Lingering policy uncertainty and regulatory delays are continuing to impede the development of hundreds of small-scale embedded generation (SSEG) projects, which are seen at the quickest and cheapest way for South Africa to address its current electricity supply deficit.
The South African Independent Power Producer Association (SAIPPA) estimates that between 2 500 MW to 3 500 MW of capacity is being constrained as a result of the problem and that 30 MW to 50 MW could be added monthly once coherent processes are instituted.
The prevailing policy framework and regulatory processes remain deeply problematic and are affecting both small plants below a capacity threshold of 1 MW, as well as larger SSEG projects.
In fact, the South African Photovoltaic Industry Association (SAPVIA) has identified just over 280 MW from projects under 1 MW and about 600 MW from projects between 1 MW and 10 MW that are currently built, but not operating, as a result of regulatory gridlock.
The South African Independent Power Producer Association (SAIPPA) estimates that between 2 500 MW to 3 500 MW of capacity is being constrained as a result of the problem and that 30 MW to 50 MW could be added monthly once coherent processes are instituted.
The prevailing policy framework and regulatory processes remain deeply problematic and are affecting both small plants below a capacity threshold of 1 MW, as well as larger SSEG projects.
In fact, the South African Photovoltaic Industry Association (SAPVIA) has identified just over 280 MW from projects under 1 MW and about 600 MW from projects between 1 MW and 10 MW that are currently built, but not operating, as a result of regulatory gridlock.
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Although sub-1 MW plants have been exempted from the theoretical burden of licensing, they are currently tied up in red tape arising from a November 2017 Licensing Exemption and Registration Notice published in terms of the Electricity Regulation Act (ERA). Issued by the Department of Energy (DoE), with the National Energy Regulator of South Africa’s (Nersa’s) concurrence, the notice amended Schedule 2 of the ERA.
Both the DoE and Nersa acknowledge the notice is “flawed” and the DoE sent an updated notice to Nersa for its concurrence in late 2018.
The updated notice exempts projects below 100 kW from any form of registration and instead directs municipal distributors to keep a register of such facilities. Plants between 100 kW and 1 MW in size are required to register with Nersa and pay a R200 registration fee.
Read more.....
Both the DoE and Nersa acknowledge the notice is “flawed” and the DoE sent an updated notice to Nersa for its concurrence in late 2018.
The updated notice exempts projects below 100 kW from any form of registration and instead directs municipal distributors to keep a register of such facilities. Plants between 100 kW and 1 MW in size are required to register with Nersa and pay a R200 registration fee.
Read more.....
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