The Nationwide Transmission Firm South Africa (NTCSA) has confirmed what it describes as a “momentary bottleneck” in curtailment funds to unbiased energy producers (IPPs), with about R2-billion of such compensation claims presently present process “verification and settlement”.
This affirmation got here solely days after EE Enterprise Intelligence MD and vitality analyst Chris Yelland wrote that renewables IPPs had skilled a pointy enhance in curtailment directions from Eskom in 2026 and have been rising more and more involved a few lack of transparency within the methodology getting used, in addition to delayed reimbursements.
Curtailment is a traditional a part of managing an electrical energy system, occurring when the system operator instructs turbines to quickly cut back output to take care of the protected and dependable operation of the nationwide grid.
That is pushed both by community constraints that restrict energy transmission, or during times the place whole electrical energy provide exceeds demand.
The place renewables capability has been procured via a public procurement course of and Eskom is the only purchaser, the facility buy agreements (PPAs) stipulate that Eskom should reimburse IPPs for the income misplaced when their output is curtailed.
The NTCSA presently administers PPAs masking 117 initiatives with a mixed capability of 10 083 MW, which presently interprets to yearly funds of about R45-billion to IPPs.
Eskom secures the income for these funds via its regulated tariff.
Yelland wrote that the quantity of vitality curtailed within the first six months of the 12 months was roughly an order of magnitude greater than in the entire of 2025, and that the monetary penalties have been turning into materials.
“Some IPPs report venture revenues working about 9% beneath price range in 2026 – a shortfall they attribute each to the vitality they have been instructed to not generate and to the lengthening delays in being reimbursed by Eskom for it,” he indicated.
In its assertion, the NTCSA stated there had been a pointy rise within the quantity and complexity of claims throughout April and Could 2026, which had exceeded typical ranges and created momentary bottlenecks.
“In response, the NTCSA has deployed further sources and is implementing course of enhancements to speed up the verification and settlement of those claims, whereas sustaining the mandatory governance, contractual, and monetary controls.”
Nonetheless, Yelland wrote {that a} central concern being raised by IPPs was the opacity of the curtailment course of itself.
“The methodology Eskom makes use of to set the benefit order, degree, frequency and targets for curtailment and reimbursements is, they are saying, removed from clear. IPPs can not readily set up why explicit initiatives are curtailed or face delayed reimbursements, in what sequence, or on what foundation.”
In its assertion, the NTCSA insisted it was managing evolving system dynamics in a method that ensured truthful and equitable remedy of all market individuals, whereas safeguarding safety of provide and minimising prices to electrical energy customers.
NTCSA CEO Monde Bala stated that the organisation would proceed to strengthen its operational processes whereas supporting investments that enabled a dependable, inexpensive and more and more renewable-powered electrical energy system past 2030.
“Because the System Operator, the NTCSA has a accountability to steadiness affordability, safety of provide and the truthful remedy of all market individuals, whereas sustaining the soundness of the nationwide grid,” Bala added.
