Electricity and Energy Minister Dr. Kgosientsho Ramokgopa advocates for grid-access rules that prioritise adding new capacity as quickly as possible, irrespective of whether it is procured through public or private means.

The Minister made these remarks in response to a query about whether upcoming Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bidding rounds could be jeopardized if the Energy Regulator denied Eskom‘s request to reserve grid capacity for these projects. Eskom, in its submission to the National Energy Regulator of South Africa (Nersa), emphasised the need to preserve grid capacity to safeguard the REIPPPP from failures similar to those experienced during REIPPPP Bid Window 6.

During Bid Window 6, no wind projects advanced to the preferred-bidder stage because the grid capacity they relied on was allocated to independent power producers with private power purchase agreements. Eskom contended that without this protection, public procurement programs would struggle to compete with the more agile private procurement initiatives.

Following an extended public-comment period, Moneyweb reported that Nersa’s electricity sub-committee recommended the Energy Regulator reject Eskom’s application when making a final determination.

Ramokgopa emphasised that South Africa’s main issue is the urgent need to add new capacity to a grid still susceptible to load shedding, despite recent improvements, rather than focusing on the integrity of the public procurement process.

The Minister expressed his support for allowing projects ready to proceed to move forward.

“We are addressing a larger problem,” he stated. “We are not prioritizing the credibility of the public-procurement process; we are tackling an energy-deficit issue. So, if the private sector is ready, I believe they should be allowed to come onstream,” Ramokgopa explained.