Printed in December 2016, When the amended Electricity Regulation Act (ERA) comes into force, it is going to regulate the use of small scale electricity turbines by requiring registration with the Nationwide 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 possible have far-reaching results, as personal use of small scale Solar Steam Generator Plans has elevated dramatically in South Africa.
“It has been reported that personal electricity era from Solar Steam Generator Plans alone has elevated from 35MW in 2015 to 159MW in 2016,” stated Norton Rose Fulbright.
“Earlier than parliament, the Division of Power expressed concern with the loss of income that municipalities and Eskom are experiencing on account of elevated personal era of energy. These concerns have been echoed by Nersa, which supported the presentation.”
In December 2016, the “Draft Licensing Exemption and Registration Notice” expresses the minister of vitality’s intention to exempt various classes of era facilities and electrical resellers from the requirement to carry a licence under the ERA.
Beneath these regulations, instead of requiring a licence, listed actions will have to be registered with Nersa.
At present any era plant operated for demonstration or for ‘personal use’, which is not related to the grid, is excluded from the licensing necessities under the ERA.
“The notice offers that listed era actions, together with these previously exempt from licensing necessities, have to be registered with Nersa,” stated Norton Rose Fulbright.
“Listed actions include the operation of era facilities with an put in capability of lower than 1MW (each related and unconnected to the grid) and era facilities for demonstration functions and for functions of standby or back-up electricity in the event of provide interruption (regardless of era capability).”
“In practice, this could imply that each house, farm, resort, hospital and shopping center with solar panels or diesel turbines (whether related to the grid or not) with a capability of less that 1MW should register with Nersa.”
Though the ERA offers that registration with Nersa have to be done on the prescribed utility type and have to be accompanied by a registration price, corresponding regulations prescribing the necessities have but to be published.
The act also empowers Nersa to refuse functions for registration under sure circumstances, together with the place an utility is “contrary to the goals of the Act”.
Non-compliance with any provision of the act is a legal offence which is punishable by a tremendous of up to R5 million and imprisonment for up to 5 years.
“We do not know what arrangements will probably be offered to accommodate present off-grid electricity users, however it's hoped that such provisions will allow all affected events to register and keep away from penalties,” stated Norton Rose Fulbright.
“Whereas the full implications of the proposed amendment will solely grow to be clear as soon as candidates begin trying to register with Nersa, if managed poorly, the Division of Power’s try to regain some control of off-grid vitality era may severely impact many people.”
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