Revealed in December 2016, When the amended Electricity Regulation Act (ERA) comes into force, it's going to regulate the use of small scale electricity generators by requiring registration with the Nationwide Power Regulator of South Africa (Nersa).
That is based on Lizel Oberholzer and Jarrett Whitehead, attorneys at Norton Rose Fulbright, who say that the regulation will possible have far-reaching results, as personal use of small scale Solar Generator Reviews 2015 has increased dramatically in South Africa.
“It has been reported that non-public electricity generation from Solar Generator Reviews 2015 alone has increased from 35MW in 2015 to 159MW in 2016,” mentioned Norton Rose Fulbright.
“Earlier than parliament, the Division of Power expressed concern with the loss of revenue that municipalities and Eskom are experiencing on account of increased personal generation of energy. These concerns were echoed by Nersa, which supported the presentation.”
In December 2016, the “Draft Licensing Exemption and Registration Discover” expresses the minister of energy’s intention to exempt varied categories of generation facilities and electrical resellers from the requirement to hold a licence underneath the ERA.
Beneath these rules, as a substitute of requiring a licence, listed activities will must be registered with Nersa.
At the moment any generation plant operated for demonstration or for ‘own use’, which isn't connected to the grid, is excluded from the licensing requirements underneath the ERA.
“The discover supplies that listed generation activities, together with these beforehand exempt from licensing requirements, have to be registered with Nersa,” mentioned Norton Rose Fulbright.
“Listed activities embody the operation of generation facilities with an installed capability of lower than 1MW (each connected and unconnected to the grid) and generation facilities for demonstration purposes and for purposes of standby or back-up electricity within the occasion of provide interruption (regardless of generation capability).”
“In practice, this would mean that each home, farm, lodge, hospital and shopping mall with solar panels or diesel generators (whether connected to the grid or not) with a capability of much less that 1MW should register with Nersa.”
Though the ERA supplies that registration with Nersa have to be performed on the prescribed application type and have to be accompanied by a registration payment, corresponding rules prescribing the necessities have but to be published.
The act additionally empowers Nersa to refuse functions for registration underneath certain circumstances, together with the place an application is “contrary to the aims of the Act”.
Non-compliance with any provision of the act is a criminal offence which is punishable by a fantastic of as much as R5 million and imprisonment for as much as 5 years.
“We do not know what arrangements will be provided to accommodate current off-grid electricity users, but it's hoped that such provisions will allow all affected events to register and keep away from penalties,” mentioned Norton Rose Fulbright.
“While the total implications of the proposed amendment will only change into clear as soon as applicants start making an attempt to register with Nersa, if managed poorly, the Division of Power’s try to regain some management of off-grid energy generation may severely affect many people.”
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