Eskom is seeking comment on proposed amendments to the grid code, which it says are required to facilitate open and non-discriminatory access to the network for new generation in a context of severe grid constraints, especially in the Cape provinces, as well as changing market dynamics.

Included in the proposed changes is the creation of a “reservation queue” that will be governed by the principle of “first-ready, first serve”, implying that projects with a higher state of readiness will be prioritised over a competing project with a lower state of readiness.

The readiness of the project, Eskom says, will be determined by “objective criteria”, such as grid-connection timelines, project size and technical criteria, including whether a project is able to offer support to the network and/or system operations.

The absence of a queuing system came to the fore earlier this year when none of the 23 wind projects that bid for a 3 200 MW allocation under government’s renewables procurement programme were selected as preferred bids, owing to claims of grid over-subscription in the Western, Eastern and Northern Cape provinces.

It subsequently emerged that bidders under the public procurement programme were disallowed by the rules of the programme from securing budget quotations from Eskom until they were selected as preferred bidders.

These rules did not apply however, to independent power producers (IPPs) that were proceeding with projects on the basis of private power purchase agreements. The private project developers were, thus, able to secure budget quotations for grid capacity that the IPPs participating under the public programme were also seeking to access.

Eskom says the purpose of the proposed rules is to allow for an orderly development of budget quotations, as well as a standardisation of procedures to support a fair and transparent process for grid access.

In its request for comment, Eskom says the amendments were required because of the increasingly dynamic environment that had arisen, following the resumption of the public procurement programme and the 2021 relaxation of generation licence requirements that have enabled IPPs to pursue private self-generation and wheeling projects.

“Eskom has received an increased number of connection applications predominantly in the Cape area (Western Cape, Eastern Cape and Northern Cape) leading to an oversubscription for grid connection capacity in this constrained area,” Eskom said in a covering note to stakeholders when requesting comment on the proposed amendments.

“As a result of the oversubscription and the overall lack of grid capacity in the Cape area, it has become imperative that Eskom conducts additional due diligence in the development of connection quotes to ensure that projects which have demonstrated readiness to connect to the grid are given priority in the allocation of the limited grid capacity in the Cape area,” the note adds.

Eskom has requested stakeholders to provide comment on the proposed amendments by March 9.