Procurement Reforms Critical to Accelerating SA’s Renewable Energy Rollout
Speaking at a recent seminar alongside the country’s leading renewable energy independent power producers, Mercia Grimbeek, Head of Project Development at ENERTRAG South Africa, joined the call for structural reforms to overcome key grid capacity and regulatory challenges that are currently hampering the deployment of renewable energy projects. Grimbeek emphasised that addressing these issues is vital not only to accelerating the pace of renewable energy rollout but also to restoring the credibility of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Grimbeek expressed the view that project developers are willing to accept some curtailment to enable new projects to connect to the grid, and called on the government to consider changes to the REIPPPP model. She stressed that consistent procurement rounds are essential for rebuilding trust in the public procurement process and stimulating the localisation of the supply chain.
“A key part of the solution lies in allowing for the co-location of projects, such as sharing a single grid connection between solar and wind projects, which would make more efficient use of existing infrastructure,” Grimbeek said. She also advocated for greater flexibility in procurement, proposing regional procurement or programmes that incorporate wind, solar PV, and battery storage co-location as a way to alleviate current grid pressures.
Grimbeek further argued in favour of “faster, smaller rollouts” rather than the large-scale, infrequent procurement rounds seen in the past. “Smaller, more frequent procurement rounds would avoid the bottlenecks created by mega-rounds and ensure a steady flow of renewable energy projects. This approach would also support the manufacturing sector and industrialisation and optimise resource use across construction and logistics.”
Concerns were also raised by sector leaders regarding the delays at the National Energy Regulator of SA (NERSA) in approving a curtailment framework. This framework is crucial for enhancing grid access in the short term and enabling new projects to connect more easily.
Grimbeek’s perspective aligns with the views expressed by Dr Clinton Carter-Brown, Head of Technical at ENERTRAG South Africa, who recently stressed the need for a broader approach to solving the grid challenges. Carter-Brown highlighted the potential of private sector involvement through innovative financing mechanisms, such as mezzanine finance, and the development of local collector grids and combined power plants to integrate diverse energy sources.
ENERTRAG South Africa’s vision extends to bolstering key transmission corridors, developing local grids at the sub-transmission level, fostering collaboration among developers, optimising the grid, and integrating combined power plants to create a more resilient and efficient energy system.