South Africa to Waive 100MW Embedded Generation License Threshold Entirely

  • South Africa’s President, Cyril Ramaphosa , has confirmed that the 100 MW licensing threshold for embedded generation projects was in the process of being lifted entirely.
  • He also confirmed that after increasing the license waiver threshold to from 1MW to 100MW in August 2021, a vibrant market was created resulting in a pipeline of private embedded generation projects with a combined capacity of around 9000MW.

The President made these confirmations in a written response to questions posed in Parliament by a member of the Democratic Alliance.

Ramaphosa said the amendment to Schedule 2 of the Electricity Regulation Act which allowed generation facilities below 100 MW in size to wheel power across the grid and to sell power to multiple customers without requiring a licence, had created a vibrant market.

Related news: Raising the generation license threshold to 100MW is neccessary but not enough

He added that the 100 MW licensing threshold was in the process of being lifted entirely by a further reform to Schedule 2 that was in progress.

Ramaphosa also pointed out that the registration process for private embedded generation projects with the country’s energy regulator, NERSA, had been “substantially simplified” to shorten timeframes for project approval.

“These measures will enable significantly more generation capacity to be added to the grid from independent power producers (IPPs),” replied Ramaphosa.

Author: Bryan Groenendaal

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