Dear SAWEA Members,
The month of May, dubbed Energy month, brought on positive developments that are necessary for a sustainable and energy secure future.
We saw the approval of Electricity Regulation Amendment (ERA) Bill by the National Council of Provinces (NCOP), succeeding the adoption of Climate Change Bill – both playing a significant role in ensuring we steadily move towards a low-carbon future.
With wind energy being one of the leading renewable energy sources, these developments further highlight the critical role that wind technology will continue to play in South Africa’s energy mix.
Bid Window 7 & NERSA Consultation Paper
SAWEA continues to support the industry’s position of a successful Bid Window 7 (BW7) following the devastating impact of the REIPPPP BW6 failure. To ensure BW7’s success, the association engaged key stakeholders to support and prioritise the procurement of BW7’s full allocated wind capacity (3200MW).
With grid capacity challenges in the areas where most wind projects have been developed, Eskom has implemented mechanisms such as the Interim Grid Capacity Allocation Rules (IGCAR), Curtailment, and the Proposed Gated Process in an attempt to address these issues. In an effort to give effect to these mechanisms, it is our understanding that Eskom applied to the National Energy Regulator of South Africa (NERSA) requesting grid capacity reservation and/or preservation for Independent Power Producers. NERSA subsequently published a consultation paper on May 18, 2024, detailing Eskom's application for public consultation and extended the consultation period. In assessing the situation and its impact on the wind industry and BW7, SAWEA supported the extension of the BW7 submission date to accommodate the NERSA consultation process, thereby maintaining the integrity of the process.
SAWEA conducted member engagements regarding Eskom's application and the associated NERSA consultation paper, recognising the differing positions among members. It is important for our stakeholders to consider this consultation paper in light of its intention to support the success of wind energy as part of the public procurement program.
We plan to respond to this consultation paper, with guidance from the SAWEA Board, in adherence to our mandate to promote and ensure a thriving wind industry in South Africa.
It is our opinion that the success of BW7 is dependent on NERSA's review and decision regarding Eskom's application.
SAWEA Initiatives Leading the Conversation
The Association is leading the conversation by launching energyDRIVE Mpumalanga in support of Energy Month. This year’s energyDRIVE is supported by the Danish Embassy, Durban University of Technology (DUT), as well as sponsored by Eskom to promote clean energy technologies, and promote green jobs in schools.
With scarce renewable energy skills and the high unemployment rate and on the back of the recently celebrated Workers’ Day, our commitment to fostering green skills in South Africa, particularly in a province that plays a central role in South Africa’s energy transition becomes even more important.
GWEC tackles misinformation about wind power globally
I had the opportunity to attend a Global Wind Energy Council dialogue at Wiston House in the United Kingdom, which brought together experts, stakeholders from the wind energy sector, and government players to share analysis, challenges, and toolkits, and take steps towards better collaboration and shared solutions to treat misinformation and/or disinformation about Wind Energy.
The learnings from this session will empower the association to respond effectively to disinformation and misinformation about wind technology given the current negative renewable energy narrative.
Post Elections
As we move past the 29th of May election and the possibility of our first coalition Government, the stoplight will remain on the energy sector to ensure energy security as part of the just energy transition in line with our global climate commitments. A thriving commercial wind power industry in South Africa is critical in the energy wheel to achieving this goal.
Regards,
Niveshen Govender
CEO
