- NERSA has derailed a government-planned allocation of the national grid for private renewable energy companies.
- This recent rejection throws into turmoil 66GW of ongoing and planned renewable energy projects.
- The South African Wind Energy Association fears further delays may hamper efforts to stave off loadshedding for good.
One key aspect of Eskom’s long-term plan to find a permanent solution for loadshedding in South Africa, was the addition of independent and private power production companies being able to join the national grid and relieve some of the demand on the utility.
While loadshedding remains suspended now for more than 100 days, the South African government is still nervous about calling the end of power cuts, and now the independent power producer programme has suffered a major setback.
The National Energy Regulator of South Africa (NERSA) on Monday rejected Eskom’s bid to reserve a portion of the national energy grid to allow private companies to connect and add electricity, citing regulatory concerns, the South African Wind Energy Association (SAWEA) said in a statement.
“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 adds.
Bloomberg writes that the refusal from NERSA may utterly derail the renewable energy-independent power producer programme set up by the government. This failed attempt to conserve grid capacity and sway investors is the second the utility has launched.
To make matters worse, South Africa has 66GW of wind and solar plants across the nation at various stages of development, which are now set to be built with no way to connect to the national grid due to NERSA’s refusal.
One of which is the Redstone Concentrated Solar Power Plant in the Northern Cape, set to be up and running this year.
Unless NERSA allows some grid allocation for private renewable energy companies, analysts believe that the long-term chance for South Africa to completely rid itself of loadshedding may grid dimmer.
“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,” the wind energy association says.
