Connection Queue Management Frameworks

1. Introduction

Connection queue management frameworks are rules used to decide which electricity-generation or electricity-consumption projects receive access to limited grid-connection capacity and in what order. They become important when many projects apply for connection but transmission or distribution networks do not have enough available capacity for all applicants.

South Africa has recently developed a more structured approach to this problem. NERSA approved the Grid Capacity Allocation Rules on 12 November 2025, and the rules were published in December 2025. They apply from 12 November 2025.

2. Why Queue Management Is Necessary

Grid capacity is not unlimited. New solar and wind projects may be concentrated in areas where transmission capacity is already constrained. If every applicant is simply placed in a first-come, first-served queue, a project that applied early but is unlikely to proceed could occupy capacity needed by a project that is ready to construct.

NERSA's 2025 Grid Capacity Allocation Rules recognise this problem. The official government notice explains that the earlier first-come, first-served (FCFS) approach created risks of speculative projects occupying grid capacity. The revised framework therefore adopts a first-ready, first-served (FRFS) principle.

3. First-Ready, First-Served Principle

The FRFS approach means that priority is connected to a project's readiness to proceed, rather than merely the date on which its application was submitted.

Readiness can involve matters such as:

completion of required applications;

availability of project information;

financial or commercial commitment;

environmental approvals;

land or site control;

technical studies;

connection agreements; and

ability to meet required development milestones.

The purpose is to reduce speculative applications and ensure that scarce grid capacity is allocated to projects demonstrating genuine progress.

4. Transparent and Non-Discriminatory Allocation

A lawful queue-management framework should provide clear, objective and transparent criteria. Applicants should know how priority is determined and what happens when an applicant fails to meet a milestone.

NERSA's rules emphasise that grid-capacity allocation should be non-discriminatory and based on open access principles. NERSA's 2025 reasoning on grid-capacity preservation also states that Eskom has obligations to provide third parties with open and non-discriminatory access to transmission and distribution systems, subject to objectively justifiable differences approved by the Regulator.

This is important because grid capacity is a scarce public infrastructure resource.

5. Queue Position and Milestone Compliance

A connection queue cannot operate effectively without milestones. A project may initially receive a place in the queue but can lose or change its position if it fails to demonstrate sufficient readiness.

This can involve:

application acceptance;

technical assessment;

grid-capacity confirmation;

environmental and other regulatory approvals;

connection agreement;

payment of required charges;

construction commencement; and

achievement of commissioning requirements.

Such requirements prevent developers from holding grid capacity indefinitely without progressing the project.

6. Grid Capacity Reservation

NERSA has also dealt with applications concerning reservation or preservation of grid capacity for particular public Independent Power Producer programmes. In its January 2025 decision, NERSA considered whether grid capacity could be preserved for section 34 IPPs while maintaining open and non-discriminatory access.

This demonstrates that queue management is not simply an administrative issue; it involves questions of regulatory authority, equality of access, public policy and efficient use of infrastructure.

7. Relevant Case Law

Sibanye Gold v Eskom (2026)

In Sibanye Gold v Eskom, a solar PV project faced difficulties concerning its proposed connection arrangements. Eskom proposed an alternative connection involving additional wheeling costs, which Sibanye argued made the project commercially unfeasible. The High Court reviewed Eskom's decision and found it unlawful and invalid.

Although the case was not directly about the 2025 queue rules, it is relevant by analogy because it demonstrates that grid-access decisions must have a lawful basis and cannot be used for improper purposes.

Eskom v Vaal River Development Association (2022)

The Constitutional Court considered Eskom's management of electricity supply in circumstances involving network capacity and municipal demand. The judgment recognised the importance of protecting the stability of the national electricity system and considered the broader statutory responsibilities surrounding electricity supply.

This supports the principle that network-capacity decisions must balance individual interests with system-wide reliability.

Eskom v Sonae Arauco (2024)

The Supreme Court of Appeal confirmed the legal significance of electricity codes made under section 35 of the ERA. The Grid Code imposes obligations concerning reliable operation of the electricity system.

The case is relevant by analogy because queue allocation must ultimately operate consistently with the technical requirements necessary to maintain system security.

J R Properties v Eskom (2016)

This case concerned the practical process of an electricity connection and Eskom's obligations concerning connection infrastructure. It illustrates that connection arrangements can create concrete obligations concerning the timing and implementation of grid connections.

8. Importance for Renewable Energy

Queue management is particularly important for solar farms, wind farms, battery storage and independent power producers. Without an effective system, scarce grid capacity can become blocked by projects that are delayed or speculative.

The move from FCFS toward FRFS is therefore designed to connect grid capacity with demonstrated project readiness while maintaining transparent and non-discriminatory access.

Conclusion

Connection queue management frameworks provide a legal and regulatory method for allocating scarce electricity-grid capacity among competing applicants. South Africa's current framework places greater emphasis on first-ready, first-served allocation, objective readiness criteria, milestone compliance, transparency and non-discrimination. NERSA's 2025 Grid Capacity Allocation Rules represent an important development in this area. Cases such as Sibanye Gold, Vaal River, Sonae Arauco and J R Properties demonstrate the wider legal importance of lawful, transparent and technically justified electricity-connection decisions.