State-owned electricity utility Eskom is set to release updated grid queuing rules that aim to manage limited grid connection capacity more effectively. The Interim Grid Capacity Allocation Rules (IGCAR) document outlines a shift from the previous "first come, first served" approach to a "first ready, first served" framework. This change comes in response to concerns over grid over-subscription and aims to prevent capacity hoarding by ensuring that only "shovel-ready" projects are granted capacity. The lack of a queuing system became apparent during the sixth bid window of South Africa's renewables procurement program when no preferred bids were selected due to grid oversubscription claims in several provinces.

The IGCAR has been developed in consultation with the industry and, although it doesn't require approval from the National Energy Regulator of South Africa, Eskom will seek to have the rules adopted and approved by the regulator. Eskom plans to hold a briefing session with industry stakeholders to provide further clarification on how the IGCAR will be implemented. Once the IGCAR process is finalized, Eskom intends to resume processing budget quotes (BQs) for grid access in the Cape region.

Eskom acknowledges previous criticism regarding the time taken to issue BQs and aims to reduce the timeframe. On average, it has taken eight months to issue a BQ in the past 12 months due to internal and industry-related issues. Eskom aims to issue BQs within six months, and the introduction of the IGCAR and other initiatives is expected to improve delivery times.

With a significant pipeline of wind and solar projects in various stages of development, it is crucial to have queuing rules that support "shovel-ready" projects. Calls for clarification of the rules have intensified following the removal of the licensing threshold for embedded generation projects, as the market is no longer dominated by a single procurement program. Eskom's revision of grid capacity allocation principles aims to allocate available capacity to projects that are ready to proceed. Operation Vulindlela reports an embedded generation project pipeline of 108 projects with a combined capacity of over 10 GW, highlighting the need for efficient grid connection processes.