- NTCSA is verifying and settling approximately R2 billion in renewable energy curtailment claims.
- The company administers power purchase agreements for 117 IPP projects with a combined capacity of 10,083 MW.
- Rising renewable energy generation is increasing the complexity and volume of curtailment related compensation claims.
The National Transmission Company South Africa (NTCSA) has moved to strengthen its administrative processes following a significant increase in renewable energy curtailment claims, as the country continues its transition towards a more diversified electricity generation mix.
The utility said approximately R2 billion in curtailment related compensation claims are currently undergoing verification and settlement. This comes as the NTCSA processes around R45 billion in annual payments to Independent Power Producers (IPPs), a figure expected to grow as additional projects come online.
According to the NTCSA, a sharp increase in the volume and complexity of claims submitted during April and May 2026 exceeded typical annual levels, creating temporary processing bottlenecks. In response, the company has deployed additional resources and introduced process improvements aimed at accelerating verification and settlement activities while maintaining governance, contractual and financial controls.
The NTCSA currently administers power purchase agreements covering 117 projects with a combined installed capacity of 10,083 MW.
Chief Executive Officer Monde Bala said the company remains committed to strengthening operational processes while supporting investment in a reliable, affordable and increasingly renewable powered electricity system beyond 2030.
“As the System Operator, the NTCSA has a responsibility to balance affordability, security of supply and the fair treatment of all market participants, while maintaining the stability of the national grid,” Bala said.
The company also sought to clarify the role of curtailment in modern power systems, describing it as a normal and increasingly common operational requirement in electricity networks with high levels of renewable energy generation.
Curtailment occurs when the System Operator instructs generators to temporarily reduce electricity output to maintain grid stability and reliability. This can result from transmission network constraints or periods when electricity supply exceeds demand, particularly during low demand periods in the middle of the day.
The NTCSA noted that the variable nature of solar and wind generation means peak renewable energy production does not always coincide with peak electricity demand. As a result, the power system continues to require sufficient baseload generation capacity, primarily from coal fired power stations, to meet demand during early morning and evening periods when solar generation is unavailable.
To maintain system balance, flexible generation technologies such as hydroelectric and pumped storage facilities are adjusted before curtailment measures are implemented. Pumped storage schemes can absorb excess daytime electricity by pumping water to higher reservoirs, reducing the need for renewable energy curtailment.
As renewable energy penetration continues to grow across South Africa, effective management of curtailment and compensation processes is expected to play an increasingly important role in ensuring investor confidence, maintaining grid stability and supporting the country’s long term energy transition objectives.
Author: Bryan Groenendaal
