Eskom, recently, published an addendum to its GCCA 2025, which confirms curtailment, that opens 3 470 MW of additional wind generation capacity in the grid constrained areas of the Western and Eastern Cape. 

NERSA provided regulatory support for curtailment in December 2023. 

Curtailment will apply as a controlled reduction of the output of renewable energy plants to reduce transmission capacity constraints. Generation will therefore be reduced in areas that experience congestion. By accepting a reasonable share of curtailment, the generation connection capacity for constrained areas can be safely increased. 

This means more projects can then connect to the grid in areas of high congestion. Curtailment will maximise the existing use of the grid and increase generation connection. 

Why is this important for IPPs and new projects? 

• There is now additional wind generation capacity that has been made available in the Eastern Cape and Western Cape under curtailment. 
• The network used in the GCCA 2025 addendum study incorporates all the preferred bidders for the bid windows up to Round 6 (BW6) and all the budget quotations (BQs) that have been issued or are pending for private off-takers.
• By accepting a reasonable share of no more than 10% of curtailment, 3 470 MW of additional wind generation can be connected to the grid almost immediately, with 2 680 MW in the Western Cape and 790 MW in the Eastern Cape.

For more insight on the curtailment process and how it impacts new generation projects to unlock grid capacity, contact Nikita Lalla and Ricardo Pillay at LnP Beyond Legal.