Increase threshold for embedded generation to 50MW for a more energy secure future
25 May 2021
On Friday, 21 May 2021, I submitted comments on behalf of the Western Cape government to the Department of Mineral Resources and Energy (DMRE) in response to the proposed amendments to Schedule 2 of the Electricity Regulation Act, 2006, calling for the license-exemption cap for embedded generation plants to be increased from 1 MW to at least 50MW, and for all generation facilities to be exempt from licensing under the threshold.
Increasing the licensing threshold for embedded generation to 50MW or higher, and simplifying and finalising the registration process would provide certainty to investors and increase access to affordable, renewable energy in South Africa. We remain in an energy crisis and large-scale private sector participation in energy generation, in partnership with government, will be key to addressing the current shortfall.
In addition, further clarity is needed on the potential role of municipalities, and the role of the private sector as generators and distributors of renewable energy to residents and businesses, particularly as it relates to energy trading opportunities under the proposed amendments.
This clarity will be critical to the success of our Municipal Energy Resilience Project which seeks to support municipalities to take advantage of the energy regulations to generate, procure and sell their own power so that we can become more energy secure in the Western Cape.