A new benchmarking assessment by the RES4Africa Foundation reveals that Eskom’s grid connection systems in South Africa are slower and less transparent than those in other developed and developing countries.
The study compared grid management frameworks in Brazil, Chile, Italy, and the US (PJM Interconnection) against five key performance indicators: grid connection timeframes, cost of connection, regulatory requirements, queue management, and transparency.
South Africa’s Evolving Regulatory Framework
South Africa’s grid connection framework is currently in flux, governed by the Interim Grid Capacity Allocation Rules (IGCAR). These rules were introduced after the failure of the sixth public renewables round, where no wind projects were selected due to capacity constraints.
Addressing Grid Hogging and Prioritizing Shovel-Ready Projects
Eskom implemented IGCAR to prevent grid hogging by prioritizing shovel-ready projects over a first-come, first-served basis.
Additionally, Eskom has sought permission from the National Energy Regulator of South Africa (Nersa) to reserve grid capacity for public Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) rounds to avoid a repeat of the failed bid window six.
Delays and Benchmarking Results
The postponement of the bid submission deadline for REIPPPP’s seventh bid window (BW7) highlights the challenges in the grid connection process.
The RES4Africa study evaluated both IGCAR and Eskom’s proposed Gated Generator Connection Process, revealing that South Africa lags in grid connection time, regulatory requirements, queue management, communication, and transparency.
To address these shortcomings, the study recommends that South Africa promptly ratifies its grid connection rules to provide investors with greater predictability.
It also suggests incorporating best practices, such as online grid application systems and real-time visibility of queue progress.
Towards a Clustered Assessment Methodology
Mohau Nei, RES4Africa Foundation Southern Africa project officer, suggests transitioning to a clustered assessment methodology instead of case-by-case approvals.
This approach would enable a comprehensive analysis of a cluster’s impact on the grid, ensuring equal access between REIPPPP and private projects, and allowing Eskom to revoke capacity from projects that fail to progress.
By implementing these recommendations, South Africa can streamline its grid connection processes, attract more investment in renewable energy, and accelerate its transition to a cleaner and more sustainable energy future.