Nersa implements grid access changes to level playing field for IPPs

The National Energy Regulator of SA (Nersa) has implemented changes to the allocation of grid capacity.

This is aimed at "facilitating a fair balance" between the interests of customers and end users, licensees, investors in the electricity supply industry and thepublic, it says.

Stephen Grootes interviews Professor Sampson Mamphweli, Head of the Energy Secretariat at the South African National Energy Development Institute (Sanedi).

Prof. Mamphweli details what he says were major flaws in the old system.

"When you want to build a renewable energy power plant - or any power plant for that matter, you'd approach Eskom and they would give you a cost estimate letter that shows where there is grid capacity in the area and, if there's no capacity, indicate what needs to be done... for instance strengthening of the grid or the laying down of new lines, and the associated cost. And then there were various programmes you would then go through."

The problem arose whenEskom reserved grid capacity for these companies based on their cost estimate and they then held on to this without actually moving forward with their project, shutting out others that wanted to develop in the same area.

The new rules say that it's 'first come, first served' in terms of the actual building of the power plant as opposed to companies just holding onto the grid capacity they've been allocated.

To hear more from Prof. Mamphweli, listen to the interview audio at the top of the article