G7 Renewable Energies withdraws case against Eskom's interim grid rules
G7 Renewable Energies has withdrawn its High Court review against Eskom's Interim Grid Capacity Allocation Rules (IGCAR), following what it describes as “meaningful industry engagements” that have resulted in an “amicable resolution”.
On June 17 Eskom unveiled the interim rules, which sought to address the prevailing scarcity of grid connections by shifting the allocation methodology from the ‘first come, first served’ approach that had applied previously to a ‘first ready, first served’ arrangement.
On July 17, G7 Renewable Energies launched a two-part application to, firstly, interdict the implementation of the rules and, secondly, to have the rules reviewed and set aside.
On July 31, the Johannesburg High Court dismissed the interdict application, but indicated that the second part of the application would be heard on September 11.
In the meantime, Eskom indicated that it would implement the rules, while engaging with industry on possible adjustments, given that various participants had expressed disquiet with the IGCAR.
The utility also indicated that it would also be seeking to have the final rules approved by the National Energy Regulator of South Africa.
In a statement, G7 reported that the industry engagements had resulted in an adjustment to the manner in which the IGCAR will be implemented and had provided much needed clarity to the process.
“The High Court review application has accordingly been withdrawn, with each party bearing its own legal costs.
“We are looking forward to seeing all projects that have been awarded grid capacity finalising their financing and contracting matters so that they can swiftly bring much needed new generation to the grid as a long-term solution to end loadshedding.”
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