Revealed in December 2016, When the amended Electrical energy Regulation Act (ERA) comes into pressure, it'll regulate the use of small scale electricity generators by requiring registration with the National Power Regulator of South Africa (Nersa).
This is in line with Lizel Oberholzer and Jarrett Whitehead, attorneys at Norton Rose Fulbright, who say that the regulation will likely have far-reaching results, as non-public use of small scale Briefcase Solar Panel Power Generator has increased dramatically in South Africa.
“It has been reported that personal electricity generation from Briefcase Solar Panel Power Generator alone has increased from 35MW in 2015 to 159MW in 2016,” mentioned Norton Rose Fulbright.
“Before parliament, the Division of Power expressed concern with the loss of revenue that municipalities and Eskom are experiencing on account of increased non-public generation of energy. These concerns had been echoed by Nersa, which supported the presentation.”
In December 2016, the “Draft Licensing Exemption and Registration Notice” expresses the minister of energy’s intention to exempt numerous categories of generation amenities and electrical resellers from the requirement to carry a licence beneath the ERA.
Underneath these laws, as an alternative of requiring a licence, listed activities will need to be registered with Nersa.
At present any generation plant operated for demonstration or for ‘own use’, which is not linked to the grid, is excluded from the licensing requirements beneath the ERA.
“The discover gives that listed generation activities, together with those beforehand exempt from licensing requirements, should be registered with Nersa,” mentioned Norton Rose Fulbright.
“Listed activities include the operation of generation amenities with an installed capacity of less than 1MW (each linked and unconnected to the grid) and generation amenities for demonstration purposes and for purposes of standby or back-up electricity within the event of provide interruption (irrespective of generation capacity).”
“In apply, this would mean that every house, farm, resort, hospital and shopping mall with solar panels or diesel generators (whether linked to the grid or not) with a capacity of less that 1MW must register with Nersa.”
Although the ERA gives that registration with Nersa should be done on the prescribed application form and should be accompanied by a registration charge, corresponding laws prescribing the necessities have but to be published.
The act additionally empowers Nersa to refuse functions for registration beneath certain circumstances, together with the place an application is “contrary to the goals of the Act”.
Non-compliance with any provision of the act is a felony offence which is punishable by a advantageous of as much as R5 million and imprisonment for as much as 5 years.
“We have no idea what arrangements can be supplied to accommodate current off-grid electricity customers, but it's hoped that such provisions will enable all affected events to register and avoid penalties,” mentioned Norton Rose Fulbright.
“While the total implications of the proposed modification will only turn out to be clear once candidates start attempting to register with Nersa, if managed poorly, the Division of Power’s attempt to regain some control of off-grid energy generation may severely affect many people.”
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