The National Energy Regulator of South Africa (NERSA) announced the approval of a Market Operator licence for the National Transmission Company South Africa (NTCSA).
The licence is applicable for 5 years.
The NTCSA is a subsidiary of state- owned Eskom, tasked to develop infrastructure to transport power from remote renewable energy projects to the grid.
Renewable energy body surveys have pointed to bottlenecks in the allocation of grid space to independent power producers (IPPs).
The latest survey was conducted by solar photovoltaic body (SAPVIA), wind energy (SAWEA) and Eskom.
The regulator said on Thursday, it has established a 14-member Electricity Market Advisory Forum (EMAF), to advise the regulator and the Minister on the development and approval of market rules and code.
The scope of the EMAF, will also include market surveillance and investigations.
Speaking at a media briefing, Nomfundo Maseti, Full-time Regulator Member at NERSA, said the NTCSA has submitted the minimum required documentation for the consideration and approval of the Market Operator licence.
“Ultimately, the Market Operator is a cornerstone of South Africa’s electricity market reform, unlocking a future where the power sector is more efficient, competitive, and sustainable” said Maseti.
She also said the significance of the approval of Market Operator licence brings many dimensions in the electricity market, including, enabling transparency and fair market operation for all market participants, driving competition, as well as promoting fair access.
Addressing concerns of fairness and independence of the approval of a licence for, of grid allocation, Thembani Bukula, Chairperson of NERSA, said “independence will be seen and not assumed.”
He also said the task of grid allocation rules being fair and avoiding discrimination, will be overseen by NERSA ultimately.