NERSA approves NTCSA’s application to implement congestion curtailment
On 9 May 2025, NERSA approved NTCSA’s application to implement “congestion curtailment”. This permits the system/network operator to restrict the amount of active power that a generation facility (like an IPP) is permitted to generate due to constraints or congestion to the grid.
Where the curtailment is implemented, the generator experiencing financial loss will be eligible for compensation – limited to the approved MYPD6 revenue application.
This is another landmark decision for South Africa to unlock grid capacity and support renewable energy growth.
The approval is effective from 1 April 2025 to 31 March 2028, but is subject to the following conditions:
- Curtailment is capped under the MYPD6 to allowable revenue for ancillary services – so any costs incurred from exceeding this allocation will not be passed on to the consumer.
- Restricted use to support additional generation in the Eastern Cape and Western Cape – given the severe grid constraints in these regions.
- Any extension to other regions requires further NERSA approval.
- NTCSA is required to address other forms of curtailment with the existing grid unavailability provisions outlined in the PPAs or connection agreements.
- NTCSA is required to report to NERSA every six months over a three-year period on the implementation of congestion curtailment.
This strategic move supports South Africa’s clean energy transition and strengthens investment confidence in the renewable energy sector, and importantly, provides another solution to South Africa’s grid capacity constraints.
This approval will enable NTCSA to facilitate new grid connections in the Eastern and Western Cape regions (which attract mostly wind projects), where transmission constraints have limited renewable energy expansion.
To understand this new curtailment framework and how your project pipeline can benefit from these changes, book a session with Ricardo Pillay.