Watch the video for the full announcement
- In a surprise move this morning, South African President, Mr Cyril Ramaphosa announced that the threshold for private companies to produce their own power without a licence, has been increased from 1 MW to 100MW.
- Wheeling is also allowed through the national grid.
- “This is not the privatisation of Eskom, this could be the rebirth of Eskom,” said Ramaphosa.
South African President, Mr Cyril Ramaphosa, announced this morning that “following an extensive public consultation process and a significant amount of technical work undertaken by the Department of Mineral Resources and Energy, we will be amending Schedule 2 of the Electricity Regulation Act to increase the National Energy Regulator of South Africa (Nersa) licensing threshold for embedded generation projects from 1 MW to 100 MW”.
Ramaphosa however, stressed that generation projects would still need to obtain a grid-connection permit, undertake an environmental impact assessments and register with Nersa, which would “verify that they have met these requirements” and provide authorisation for the plants to operate.
The president also confirmed that that generation projects to power mines, factories and farms would also be allowed to wheel electricity through municipal and Eskom networks and sell surplus electricity to nonrelated buyers.
Author: Bryan Groenendaal