Small Scale Embedded Generation: Registration vs. application for connection

This 2021 industry brief by GreenCape examines the regulatory requirements for Small Scale Embedded Generation (SSEG) in South Africa, specifically the distinction between registration with the National Energy Regulator of South Africa (NERSA) and applications for connection with electricity distributors.

• The South African SSEG market, primarily dominated by rooftop solar photovoltaic installations, grew from a few hundred systems in 2015 to over 100,000 systems with more than 1GW of installed capacity in 2020. The total annual available market is projected to reach a saturation point of approximately 500 MWp installed per year, potentially totaling 7.5 GW of installed capacity and a market value of R75 billion by 2035.
• Regulatory requirements for SSEG vary by capacity: systems under 100kW generally do not require NERSA registration (provided there is an existing connection point and the distributor maintains a register), while those between 100kW and 1MW require registration. Systems between 1MW and 10MW require both registration and licensing, and plants exceeding 10MW require licensing, ministerial determination, and national procurement. All grid-connected generation must be registered with the relevant transmission or distribution grid operator.
• There is a critical distinction between the application for connection and registration. For systems between 100kW and 1MW, the process involves two phases: first, applying to Eskom or a local municipality for connection to the grid, and second, applying to NERSA for registration using a confirmation letter from the distributor. Between 2019 and 2021, NERSA registered 139 projects totaling 62MW.
• The lack of a clear regulatory landscape has created stakeholder uncertainty and increased project risk, which in turn raises financing costs as lenders price in this risk. Failure to correctly license and register installed systems can result in customers being charged a service fee for the disconnection of unauthorized connections.
• South Africa's electricity demand is primarily met by Eskom, which supplies approximately 95% of the total demand. The system has faced intensive load shedding from 2008 to 2015 and again in 2019 and early 2020, driven by the underperformance of new coal capacity and a decline in Eskom's generation energy availability factor (EAF) from approximately 94% in 2002 to 67% in 2019.

APA

Radmore, J. (2021). Small Scale Embedded Generation: Registration vs. application for connection. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf

Chicago

Radmore, Jack. Small Scale Embedded Generation: Registration vs. application for connection. GreenCape, 2021. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf.

Wikipedia

{{cite report |last1=Radmore |first1=Jack |title=Small Scale Embedded Generation: Registration vs. application for connection |publisher=GreenCape |date=2021 |url=https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{radmore2021small, author = {Radmore, Jack}, title = {{Small Scale Embedded Generation: Registration vs. application for connection}}, institution = {GreenCape}, year = {2021}, url = {https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }