The South African Wind Energy Association (Sawea) has voiced its concerns regarding the National Energy Regulator of South Africa's (Nersa) decision to reject Eskom's application to reserve grid capacity for renewable energy projects under the public procurement programme.
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In a media statement, Sawea acknowledged the regulatory complexities involved but emphasised the potential negative impact on the wind energy sector and the broader renewable energy landscape in South Africa.
“Sawea has consistently advocated for a balanced approach to grid capacity allocation, ensuring both public and private procurement processes work synergistically," the statement read.
The Association is of the opinion that a foundational public procurement programme is instrumental in stimulating socioeconomic development and contributing towards energy security as we transition to a low carbon energy system.
Sawea also highlighted the significant delays and financial losses caused by the failure to address grid allocation processes, stating that this has "devastated investor confidence and jeopardised the success of wind energy projects."
Eskom and Nersa solution
The association called on Eskom and Nersa to collaborate and find viable solutions to the grid challenges, warning that these issues will continue to undermine the open electricity market envisaged by the Electricity Regulation Act Amendment Bill.
Sawea urged all parties involved 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.
The association says it remains committed to engaging with government bodies, including Nersa and Eskom, to enhance the effectiveness of grid capacity and its allocation processes.
