The South African Wind Energy Association (Sawea) has raised concerns about energy regulator Nersa’s decision to reject Eskom’s application to reserve grid capacity for renewable energy projects.
Sawea said the move by Nersa threatens the success of bid window 7 of the Renewable Energy Independent Power Producers Programme (REIPPPP), and consequently South Africa’s energy stability.
“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,” Sawea said in a statement on Monday.
According to the statement, the failure to address grid allocation processes – grid access constraints are the major cause of the failure of bid window 6 of the REIPPPP – has resulted in significant delays and financial losses, undermining 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 said.
The association said it has consistently advocated for a balanced approach to grid capacity allocation that ensures both public and private procurement processes work together. It believes that a foundational public procurement programme is instrumental in stimulating socioeconomic development and contributing towards energy security as South Africa transitions to a low-carbon energy system.
Viable solutions
In the statement, Sawea called on Eskom and Nersa to recommend and ensure alternative viable solutions to the grid challenges threatening the success of the renewable energy programme to “ensure the successful integration of renewable energy into the grid”. It also highlighted the critical role renewable energy will play in ensuring South Africa’s energy supply is sufficient to foster economic growth.
“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,” said Sawea. – © 2024 NewsCentral Media