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Print[Ferro-Alloys.com]A regulatory reform exempting small and medium-sized electricity generation projects from the requirement of a National Energy Regulator of South Africa (Nersa) licence is an “obvious and easy way to liberate a huge pipeline of investment that will assist South Africa to have sufficient electricity for its development needs”.
However, leading energy commentator Professor Anton Eberhard says the draft amendment to Schedule 2 of the Electricity Regulation Act, published for comment on April 23, will not meet this objective, as the language remains ambiguous, while the licence-exemption threshold is set too low.
In formal comments on the draft amendment, Eberhard, who directs the Power Futures Lab at the University of Cape Town Graduate School of Business, says the quickest way of getting more megawatts on to the grid lies in making it easier for electricity consumers to devise their own solutions to restore electricity supply security.
The proposed amendment , he argues, falls short in two key respects:
the upper threshold for licence exemptions of 10 MW is too low;
the draft regulations are confusing and restrictive on the right of licence-exempted generators to sell back to the grid, or to third parties.
Eberhard says lifting the licence-exemption cap from 1 MW to 10 MW will make a big difference to rooftop solar on commercial and industrial properties, but is not big enough for consumers who don’t have adequate space and wish to purchase electricity on a willing buyer, willing seller basis from distributed independent power producers wheeling across the grid.
source:MiningWeekly
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