Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Rules

Grid Capacity Allocation Rules

7. Grid Capacity Allocation Process Requirements
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7.1 The grid capacity allocation process shall have three stages that include the pre-feasibility stage, reservation stage and allocation stage, as shown in Figure 1 below.

 

N6982 Figure 1

 

7.2 Pre-feasibility stage: An Applicant shall apply for a CEL with a relevant NSP and demonstrate project development intent, showing that they have started engagements with relevant authorities such as the Department of Environmental Affairs and landowners.

 

7.3 The Applicant should be able to determine the project location, size of the project in terms of Megawatts (MWs) and technology.

 

7.4 The Applicant shall also be required to pay a reasonable fee for the cost of the provision of a CEL.

 

7.5 The timelines for the provision of a CEL shall be in line with the requirements of the Grid Code, unless the NSP has a reduced timeline compared to those indicated in the Grid Code.

 

7.6 Reservation stage: The capacity shall be reserved for a project when an Applicant has accepted the CEL and has paid the CEL fee.

 

7.7 The Applicant must also provide proof of the following readiness documents:
(a) Environmental authorisation for the generation site
(b) Provision of a financial guarantee
(c) Verified site resource data, such as twelve months site resource data for wind technology or satellite-verified data for solar technology
(d) Proof confirming that it has applied for/obtained registration or a generation licence with NERSA.

 

7.8 Thereafter, the Applicant shall be required to apply for a BQ.

 

7.9 The BQ shall be accompanied by all the relevant agreements such as connection agreements and implementation agreements.

 

7.10 The timelines for the provision of a BQ shall be in line with the requirements of the Grid Code, unless should the NSP have a reduced timeline compared to those indicated in the Grid Code.

 

7.11 Allocation stage: The capacity shall be allocated to a project when it has proof of the following readiness documents:
(a) When the BQ has been accepted and provision of financial guarantees related to project execution.
(b) When the Applicant and an NSP have signed legally binding agreements such as a connection agreement(s) and/or implementation agreement.

 

7.12 The connection agreement(s) and/or implementation agreement shall contain the technical scope, project timelines, and the Commercial Operation Date (COD).

 

7.13 Construction schedules and Engineering Contracts may be submitted to the NSP to ensure the successful commissioning of the project.

 

7.14 The readiness of the three stages of the grid capacity allocation process shall be assessed by either a pass or fail condition based on the requirements/criteria emanating from each of the three stages. An NSP shall be required to use the readiness criteria illustrated in Table 1 to move the project from one stage to the next.

 

N6982 Table 1

 

7.15 The approach set out in Table 1 supports the first-ready, first-served principle whereby a project will only move to the next grid capacity allocation stage when all conditions from a previous stage are met.