The Minister of Energy recently amended Schedule 2 of the Electricity Regulation Act No. 4 of 2006. The legislation previously exempted a limited number of electricity-generating activities from requiring a license to operate a generation, transmission or distribution facility (e.g. in case of demo projects or non-grid connected supply of electricity other than for commercial use).
With the amendment, the Regulation additionally exempts a number of activities from the licensing requirement, including the operation of a generation facility:
- With an installed capacity of less than 1MW connected to the grid, to produce electricity for a single customer either through a wheeling agreement or not
- With an installed capacity of less than 1MW not connected to the grid, to produce electricity for own use
- Where a co-product, by-product, waste product or residual product of an underlying industrial process is used to produce electricity for own use
- Where standby or back-up electricity is produced in case of an electricity supply interruption
Although entities still need to formally register with the Regulator, the new legislation significantly lowers the (administrative) hurdle for enterprises to develop small-scale renewable energy generation projects for electricity supply. Our team of dedicated consultant has extensive experience in this area.
Should you wish to discuss the developments and opportunities arising as a result, please find our contact details here.