- Italy’s RES4Africa Foundation’s (Renewable Energy Solutions for Africa) mission is to create an enabling environment for scaling up investments to accelerate a just energy transition and transformation.
- They have released a study entitled GRID ACCESS QUEUEING MECHANISMS FOR RE PROJECTS IN SOUTH AFRICA.
- The study delves into the complex landscape of South Africa’s electricity industry, focusing on the critical aspect of grid access queueing mechanisms for renewable energy projects and comparing them with other developing countries.
- The study finds much room for improvement.
With a historical reliance on coal, the nation is undergoing a transformative shift, incorporating renewables into its energy mix. The removal of licensing regulations and caps on embedded generation sets the stage for increased renewable integration, but challenges in grid connection and capacity management are proving difficult to navigate.
The overall aim of this study is to assess and analyse South Africa’s grid connection process and to propose international best practices as potential reference for the improvement of the current process. The study seeks to provide valuable insights for decision makers and stakeholders, enabling an efficient, transparent, and equitable grid access framework.
The study combines an examination of the current regulatory and grid management framework in South Africa with a comprehensive review of international case studies. Key performance indicators such as grid connection time, cost, regulatory clearances, connection queue management, and transparency guide the analysis, drawing lessons from Italy, Chile, Brazil, and the US-PJM.
Within the framework of the KPIs identified for this study, the following findings are key:
- Grid Connection Time: Brazil’s structured timeline approach offers a benchmark to enhance efficiency and reduce delays.
- Cost of Connection: Chile’s open-access principle presents insights to minimise financial barriers for renewable projects.
- Regulatory Requirements: Chile’s regulatory efficiency and subsidy-free market conditions showcase effective policy reforms.
- Connection Queue Management: The US-PJM’s and Italy’s clustered assessment processes demonstrate optimal queue management strategies.
- Transparency and Communication: The US-PJM’s transparent procedures provide lessons to improve communication and procedural fairness.
South Africa’s grid access challenges are acknowledged, particularly in Bid Window Six of the REIPPP programme – emphasising the need for an enhanced system. Eskom’s interim grid capacity allocation rules serve as a mitigation strategy, though these are yet to be approved by NERSA. Recommendations include streamlining processes, cost optimization, regulatory reforms, effective queue management, and transparent communication. By considering incorporating these insights, South Africa can propel its energy transition, fostering a resilient and sustainable renewable energy landscape.
Link to the fully study report HERE
Author: Bryan Groenendaal
