Energy experts welcome amendment allowing IPPs to generate power for SA

The amendment opens the door for independent power producers (IPPs) to generate up to 100MW of power without having to go through a drawn-out licencing process.

FILE: Government said the amendment would open doors for significant investment in new generation capacity in the short to medium term.  Picture: Pixabay.com.

CAPE TOWN - Energy experts on Friday said an amendment to South Africa’s electricity regulations was a major step forward in diversifying the country’s energy sources.

The Department of Mineral Resources on Thursday gazetted the amendment to Schedule Two of the Electricity Regulation Act, which allows independent power producers (IPPs) to generate up to 100MW of power without having to go through a drawn-out licencing process.

President Cyril Ramaphosa announced the development in June but projects will still need to be registered with the National Energy Regulator of South Africa.

Government said the amendment would open doors for significant investment in new generation capacity in the short to medium term.

Managing Director of energy company Rubk, Ruse Moleshe, welcomed the move to expand embedded generation in the country.

The department said it would also aid in securing energy security for South Africa and lessening the impact of load shedding.

Meanwhile, Eskom said the new regulations around embedded energy generation would help to reduce the electricity supply gap in the country.

Spokesperson Sikonathi Mantshantsha said the move would also assist in efforts to provide reliable and sufficient electricity for the economy while Eskom conducted much needed repairs on its infrastructure.

“Eskom welcomes the amendment to allow the operation of a generation facility with a capacity of a maximum of 100MWwithout obtaining a licence from Nersa.”

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