CEO Voice - October 2024
Dear SAWEA Members,
As we conclude the third quarter, we reflect on notable regulatory and policy advancements, including the ERA Amendment Bill being signed into law, consultations on NERSA’s wheeling framework, submissions for BESIPPPP BW2 and Bid Window 7, Public forums on NTCSA’s Transmission Development Plan and the SA Wholesale Electricity Market Code being advanced.
Public Procurement Programme Reform
With the announcement of prefeered bidders for Bid Window 7 on the horizon, the public procurement programme has come into focus. Given the critical role of the REIPPP in shaping South Africa’s energy future, SAWEA was honoured to have industry leaders, including Minister of Electricity & Energy Kgosientsho Ramokgopa, NTCSA Chairperson Priscillah Mabelane, and IPPO Head Bernard Magoro, address the industry at Windaba 2024.
Together with the board, we engaged extensively with these stakeholders, highlighting critical industry challenges and areas where we urgently seek their intervention. They shared insights into strategic initiatives on the horizon. Central to our discussions with the IPPO were acceleration plans for public procurement aligned with the IRP2019—particularly for wind energy—and strategic measures to enhance the REIPPP.
We are encouraged that our advocacy efforts are both recognised and prioritised. This was resounded by Minister Ramokgopa’s recent media briefing, which outlined key interventions to reform the public procurement programme, resonating with discussions held at Windaba and stakeholder consultations led by the Minister. As an industry, we look to the Government to ensure that public procurement is able to work synchronously with private procurement of renewable energy and this remains aligned with ongoing power sector reforms, addresses current challenges, and accelerates renewable energy integration—particularly wind—into the grid.
Strengthening and Expanding NTCSA’s Transmission Infrastructure
NTCSA's recent public forum on the Transmission Development Plan (TDP 2025-2034) has provided an insightful roadmap for strengthening and expanding South Africa’s transmission infrastructure. The NTCSA outlined well-defined strategies for enhancing grid capacity through extensive transmission network expansion and refurbishment. This plan arrives at a crucial time, with a pressing need to accommodate an additional 5.2 GW of renewable energy from Independent Power Producers (IPPs) currently in execution, which will complement the existing 8 GW already connected to the grid. The TDP emphasises urgent upgrades to the central transmission corridor and introduces two new corridors—Eastern and Western—to facilitate energy flow from the resource-abundant South to the demand-heavy Northern areas. These objectives align closely with the South African Renewable Energy Grid Studies (SAREGS), reflecting a structured, data-driven influence from industry stakeholders. Over the next decade, NTCSA aims to construct 14,000 kilometres of transmission lines, supported by dedicated budget allocations. However, accelerating this ambitious build-out will necessitate robust public-private partnerships. The plan’s commitment to grid stability and renewable integration marks a significant step forward, though its success will ultimately depend on effective execution and partnership-driven momentum.
Wind in Africa – Strengthening Policy Frameworks
Forming part of the Global Wind Energy Council’s Task Force that supports growth opportunities for wind energy on the African continent, we welcome the establishment of the Nigeria Wind Energy Council (NWEC). Lobbying tools for African markets such as the GWEC Africa Wind Energy Handbook are increasingly becoming more important for the growth of the sector on the continent. Our sector is better equipped to attract investments and support project viability across the continent. A critical chapter in this handbook is the Policy Frameworks, which emphasises that a solid policy framework helps to attract domestic and foreign investments and ensure steady rates of returns on projects. At SAWEA, strengthening wind investment is a priority, and GWEC has advanced our efforts by supporting the appointment of our new Policy Advisor, Clifford Rikhotso, who joined us on the 1st of October 2024, hitting the ground running at Windaba.
The Final Stretch
As we approach year-end, we’re gearing up for strategic planning to lay a solid foundation for 2025. The journey ahead for South Africa’s wind sector is significant. To reach new frontiers, we must maximize our standing committees as coordinated, strategic platforms to advance the wind energy agenda in South Africa.
Regards,
Niveshen Govender
CEO
