The Department of Mineral Resources and Energy gazetted the Amended Schedule 2 of the Electricity Regulation Act 4 of 2006 on 12 August 2021, for 100 megawatts of embedded electricity generation as approved by Minister Gwede Mantashe.
Under the newly gazetted Amended Schedule 2 of the ERA, applicants for 1 – 100MW embedded electricity generation projects will now be exempt from the obligation to apply for a licence but, will be required to register with the National Energy Regulator of South Africa (NERSA.)
The amendment follows President Ramaphosa’s announcement on 10 June 2021 that the Schedule 2 Amendment of the ERA would be published within 60 days.
The Amendment serves to increase the threshold for embedded generation from the current 1MW to 100MW without the need for a license. The intervention to reform the electricity regulation regime has been hailed as a positive way forward by the energy sector and industry across the board.
It is envisaged that this step will unlock significant investment in new generation capacity in the short-to-medium term, and make significant inroads towards achieving national energy security, as well as reduce the impact of loadshedding across the country.