The National Transmission Company South Africa (NTCSA) is set to procure 750 MW of new generation capacity, specifically for grid reserves, in its first formal role as buyer since separating from Eskom. The Ministry of Electricity and Energy has submitted a request to the National Energy Regulator of South Africa (NERSA) for concurrence with a proposed Section 34 determination under the Electricity Regulation Act, which is now open for public comment.
According to the consultation paper, published last Friday, May 16, the procurement comprises 500 MW of instantaneous reserves and 250 MW of regulating reserves, which are both intended to support short-term system balancing rather than bulk energy supply. These services will be sourced on a technology-agnostic basis and must be operational between the end of 2026 and 2027.
“The capacity to be procured forms part of the capacity allocations approved by Cabinet in the Integrated Resource Plan for Electricity 2019 and capacity allocations from determinations gazetted in 2020 and 2022 respectively,” the consultation paper says.
This marks the first formal step for the NTCSA to act as buyer under the Electricity Regulation Act since its legal separation from Eskom. If NERSA approves, the NTCSA will be required to initiate a competitive tender process in line with procurement legislation.
Public comments must be submitted to NERSA by June 14. To read the full consultation paper, click here.
