Nersa Rejection of Grid Reservation

The South African Wind Energy Association (SAWEA) acknowledges the decision by the National Energy Regulator of South Africa (NERSA) to reject Eskom's application to reserve/preserve grid capacity for the public procurement programme’s renewable energy projects. While we understand the regulatory complexities involved, SAWEA is deeply concerned about the implications of this decision for the wind energy sector and the broader renewable energy landscape in South Africa. 

Given the failure of the REIPPPP Bid Window 6 for wind energy, SAWEA has consistently advocated for a balanced approach to grid capacity allocation, ensuring both public and private procurement processes work synergistically. The Association is of the opinion that a foundational public procurement programme is instrumental in stimulating socio-economic development and contributing towards energy security as we transition to a low carbon energy system.  

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. 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 calls on Eskom in concurrence with NERSA to recommend and ensure alternative viable solutions to the grid challenges which will eventually affect public interests in the electricity market. Ongoing failures evident in Bid Window 6 and expected again in Bid Window 7 need to be addressed to enable the successful integration of renewable energy into the grid through both public and private avenues.  

While we recognise the GNU’s ambitions in renewable energy, these goals will not be realised unless the current challenges are addressed promptly. A focus on grid infrastructure is essential to prevent recurring issues and ensure a sustainable energy future. It is crucial for the future of South Africa's energy landscape that we work together, with the leadership of Minister Ramagoka through the Department of Electricity and Energy, to overcome these challenges and realise our shared ambitions for a sustainable and economically vibrant future. 

SAWEA remains committed to continuing its engagements with government bodies, including NERSA and Eskom, to enhance the effectiveness of grid capacity and its allocation processes. We urge all parties to prioritise grid capacity with transparent and fair allocation rules that protect public interests and foster investor confidence in South Africa's renewable energy sector.