Eskom grid capacity warning

The National Energy Regulator of South Africa (Nersa) has rejected Eskom’s application to reserve grid capacity for the public procurement programme’s renewable energy projects.

This is according to the South African Wind Energy Association (SAWEA), which has said it is deeply concerned about the future of renewable energy in South Africa following the decision.

SAWEA says a public procurement programme will stimulate socio-economic development and ensure energy security.

This follows the failure of the Renewable Energy Independent Power Producer Procurement Programme’s (REIPPPP) Bid Window 6.

“The failure to address grid allocation processes has resulted in significant delays and financial losses, devastating investor confidence and jeopardising the success of wind energy projects,” SAWEA said.

“With no solution in sight, the grid challenges will continue to undermine the open electricity market envisaged by the Electricity Regulation Act Amendment Bill.”

SAWEA has, therefore, called upon both Eskom and Nersa to accommodate the grid challenges that will eventually arise as the country transitions to a low-carbon energy system.

Specific reference was made to the challenges experienced in Bid Window 6.

SAWEA says that while it understands the current administration’s goals for renewable energy, a focus on grid infrastructure is necessary to ensure the sustainability of energy in South Africa’s future.

The association said it is important for the industry and the Department of Electricity and Energy to join forces.

“It is crucial for the future of South Africa’s energy landscape that we work together to overcome these challenges and realise our shared ambitions for a sustainable and economically vibrant future.”