Electricity Minister Ramakgopa says no more wind projects in the Cape until grid capacity is upgraded

South Africa’s next renewables bidding round will prioritize locations with sufficient grid connection capacity, according to Electricity Minister Kgosientsho Ramokgopa.

This will exclude much of the Western and Eastern Cape, whose distribution infrastructure is not robust enough to handle current generation projects. Eskom 4GW of generation capacity could be unlocked in the Western Cape if 10% of the peak generation could be curtailed.

Curtailment is necessary, it is argued, because much of the renewable sources are highly variable, leading to high peaks and troughs that need to be managed to avoid the risk of overloading the grid during extreme fluctuations.

A new battery park in Worcester, the largest on the continent, was commissioned recently to mitigate the fluctuation associated with wind power.

Ramokgopa, anticipating the launch of the seventh bid window in December, emphasized the need to match “projects to grid capacity”, and address issues faced in the recent Bid Window Six, where none of the 23 wind projects were selected, due to grid capacity constraints.

Bid Window Seven (BW7), initially planned for mid-year, was delayed awaiting clarity from Eskom on available connection capacity. Eskom’s updated Generation Connection Capacity Assessment (GCCA) showed no capacity in specific regions but indicated 19.9 GW elsewhere in the country.

Additionally, Ramokgopa reported Cabinet approval for the Just Energy Transition Investment Plan (JET-IP) implementation, releasing financial resources for transmission infrastructure development to aid electricity industry decarbonization.

Several developed countries have pledged $11.9 billion in loans to support JET-IP. Forestry, Fisheries, and Environment Minister Barbara Creecy will unveil the plan at COP28.

A larger transmission funding plan, unlocking private finance and skills for grid infrastructure, will be presented to Cabinet. The updated Integrated Resource Plan (IPR) is expected to be presented by Mineral Resources and Energy Minister Gwede Mantashe at the next Cabinet meeting, followed by public consultation. Ramokgopa highlighted the plan’s elevation to Cabinet, anticipating public engagement on the IRP elements.

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