licensingregistration_case_study_24_11-3-6ce6401567c69eee.pdf
Summary
This industry brief by GreenCape outlines the registration and connection processes for embedded generation in South Africa, specifically focusing on the regulatory changes introduced by the Amended Schedule 2 of the Electricity Regulation Act 4 of 2006 on 5 October 2021.
Key insights
- The South African embedded generation market, primarily driven by rooftop solar photovoltaic (PV) installations, reached an estimated installed capacity of 1.5 GW in 2021. The market is projected to grow to a total of 7.5 GWp of installed capacity by 2035, with an annual installation rate potentially reaching 500 MWp.
- On 5 October 2021, the Department of Mineral Resources and Energy gazetted the Amended Schedule 2 of the Electricity Regulation Act 4 of 2006, which increased the threshold for embedded generation that can operate without a license from 1 MW to 100 MW.
- Embedded generation facilities with a capacity between 100 kW and 100 MW are required to register with the National Energy Regulator of South Africa (NERSA), although they do not require a generation license or a ministerial determination. Facilities exceeding 100 MW must be licensed by NERSA and be part of a ministerial determination and national procurement.
- The process for embedded generation systems between 100 kW and 100 MW involves two distinct phases: first, obtaining connection approval from a licensed distributor (such as Eskom or a local municipality), and second, applying for registration with NERSA using the distributor's confirmation letter.
- Failure to correctly license or register installed systems can lead to severe repercussions for customers, including the payment of service fees for the disconnection of unauthorised connections and the potential disconnection of electricity supply to the property.
- South Africa's electricity landscape is dominated by Eskom, which supplies approximately 95% of total demand. The country experienced significant load shedding in H1-2021, totaling 650 hours (15% of the time), driven largely by a declining Energy Availability Factor (EAF) of 61.3% for that period.
Cite the original document
- APA
- GreenCape (n.d.). licensingregistration_case_study_24_11-3-6ce6401567c69eee.pdf. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_CASE_STUDY_24_11-3.pdf
- Chicago
- GreenCape. licensingregistration_case_study_24_11-3-6ce6401567c69eee.pdf. n.d. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_CASE_STUDY_24_11-3.pdf.
- Wikipedia
- {{cite report |author=GreenCape |title=licensingregistration_case_study_24_11-3-6ce6401567c69eee.pdf |url=https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_CASE_STUDY_24_11-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greencapendlicensingregistrationcasestudy241136ce6401567c69eeepdf, author = {{GreenCape}}, title = {{licensingregistration\_case\_study\_24\_11-3-6ce6401567c69eee.pdf}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_CASE_STUDY_24_11-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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