Revealed in December 2016, When the amended Electricity Regulation Act (ERA) comes into force, it'll regulate the usage of small scale electricity generators by requiring registration with the National Power Regulator of South Africa (Nersa).
That is in line with Lizel Oberholzer and Jarrett Whitehead, attorneys at Norton Rose Fulbright, who say that the regulation will likely have far-reaching effects, as non-public use of small scale Solar Generator Reviews 2017 has elevated dramatically in South Africa.
“It has been reported that non-public electricity generation from Solar Generator Reviews 2017 alone has elevated from 35MW in 2015 to 159MW in 2016,” mentioned Norton Rose Fulbright.
“Before parliament, the Division of Power expressed concern with the lack of income that municipalities and Eskom are experiencing as a result of elevated non-public generation of energy. These issues 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 varied classes of generation amenities and electrical resellers from the requirement to carry a licence under the ERA.
Under these regulations, instead of requiring a licence, listed activities will have to be registered with Nersa.
At present any generation plant operated for demonstration or for ‘own use’, which isn't related to the grid, is excluded from the licensing necessities under the ERA.
“The notice gives that listed generation activities, including these previously exempt from licensing necessities, have to be registered with Nersa,” mentioned Norton Rose Fulbright.
“Listed activities embrace the operation of generation amenities with an installed capacity of lower than 1MW (each related and unconnected to the grid) and generation amenities for demonstration purposes and for purposes of standby or again-up electricity in the event of supply interruption (irrespective of generation capacity).”
“In practice, this might imply that every home, farm, hotel, hospital and shopping center with solar panels or diesel generators (whether or not related to the grid or not) with a capacity of much less that 1MW should register with Nersa.”
Though the ERA gives that registration with Nersa have to be finished on the prescribed utility kind and have to be accompanied by a registration fee, corresponding regulations prescribing the requirements have yet to be published.
The act also empowers Nersa to refuse applications for registration under sure circumstances, including where an utility is “contrary to the objectives of the Act”.
Non-compliance with any provision of the act is a prison offence which is punishable by a nice of up to R5 million and imprisonment for up to 5 years.
“We do not know what preparations might be supplied to accommodate current off-grid electricity users, but it is hoped that such provisions will enable all affected events to register and keep away from penalties,” mentioned Norton Rose Fulbright.
“Whereas the full implications of the proposed modification will only become clear as soon as candidates start attempting 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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