The government of South Africa has officially increased the license requirement for embedded generating projects from 1 MW to 100 MW. The ERA schedule 2 amendment would be published within 60 days. The amendment raises the barrier for embedded generating from 1 MW to 100 MW without the need for a license.
Project developers will be exempted from applying for a licence, but they must register with the South African National Energy Regulator. According to the government, the new measures are intended to unleash considerable investment in new generating capacity in the near to medium term, as well as to assist the country in reducing the impact of losing electricity constantly.
It will most likely aid the country in constructing large-scale unsubsidized wind and solar plants outside of the Renewable Energy Independent Power Producer Procurement Program, which provided significant growth in the previous decade but has failed to provide significant volumes in the current one.
South Africa is attempting to lessen its reliance on Eskom, the country’s state-owned utility. The ailing utility, which is presently unable to satisfy the country’s electricity demand owing to financial and operational difficulties, has lately begun to examine renewables for its plant portfolio. Eskom is attempting to remove its energy monopoly as it experiences regular blackouts, which are caused, in part, by maintenance difficulties at its old coal-fired power facilities.