Proposed registration and licensing of embedded electricity generation: draft amendments to Electricity Regulation Act

Proposed registration and licensing of embedded electricity generation: draft amendments to Electricity Regulation Act.

By NEASA Media Department, 10 May 2021.

The Minister of Mineral Resources and Energy, on 23 April 2021, issued a notice inviting the public to comment on proposed amendments to the Electricity Regulation Act.

The proposed amendment seeks to increase the limit, below which it is not required to obtain a license by any legal entity that produces electricity and is connected to the distribution system, to 10 MW. Effectively, the amendments raise the threshold for embedded generation, providing business and private individuals the ability to generate their own electricity, separate from the Eskom grid.

The current regulations require all embedded generation plants that produce more than 1MW to apply for a licence. Under the new regulations, these power producers will still have to register with the National Energy Regulator (NERSA), but will no longer require a license providing that they do not produce more than 10MW of electricity.

Interested parties should submit written comments by no later than Friday, 4 June 2021, to the Director General of the Department of Mineral Resources and Energy, by way of:

• post to Private Bag X96, Pretoria, 0001 or Matimba House, 192 Visagie Street,                Pretoria 0001; or
• email to Matthews Bantsijang (Email Address: Matthews.Bantsijang@dmre.gov.za);        or
• alternatively, contact Matthews on 012 406 4776 should further information be                required.

We request that a copy of all comments submitted be forwarded to jamie@neasa.co.za for purposes of future deliberations.