Document background
The Power Sales Agreement (PSA) is a fundamental document in South Africa's energy sector, used to establish and regulate the commercial and technical relationship between power generators and purchasers. This agreement is essential for both conventional and renewable energy projects, typically used when an independent power producer wants to sell electricity to a utility, municipality, or private off-taker. The PSA must comply with South African electricity regulations, including NERSA requirements, and typically includes detailed provisions on power supply specifications, pricing structures, delivery points, metering arrangements, and operational procedures. It's particularly relevant in the context of South Africa's energy market liberalization and the increasing role of independent power producers in addressing the country's energy needs. The agreement also needs to account for specific local requirements such as grid compliance, environmental regulations, and where applicable, Black Economic Empowerment provisions.
