Electricity Generation: Licensing Exemption and Regulation

The Department of Mineral Resources and Energy (DMRE) invites you to submit written comments on the proposed Licensing Exemption and Regulation notice published by Minister of Gwede Mantashe.

According to the Department, the notice seeks to operationalise the “various measures to address South Africa’s electricity challenges”, announced by President Cyril Ramaphosa at the height of the electricity crisis in July.

“It outlines a set of electricity generation activities that are exempt from licensing and those that in addition to being exempt from licensing must also comply with the Code (distribution code, transmission code, or any code approved by the Regulator) and must be registered with the Regulator.

“Some of the activities exempt… include the operation of any generation facility with or without energy storage, of unrestricted capacity, with a Point of Connection on the transmission or distribution power system, and the trading of electricity by a reseller in circumstances respectively specified in sections 3.1 and 3.5 of the proposed Schedule 2 of the Electricity Exemption and Regulation Act,” the department said.

The exempt activities include:

▪ Operation of a generation facility with or without battery storage for the sole purpose of providing standby or back-up electricity in the event of electricity supply interruption for a duration of no longer than the electricity supply interruption itself;
▪ Operation of any generation facility with or without battery storage irrespective of capacity (MW) and the Facility does not have a point of connection, and
▪ Operation of a facility with a capacity of no more than 100 kilowatts which complies with the code and has a Point of Connection, the distributor has prescribed the conditions relating to the continued use of the Point of Connection, and the Regulator has prescribed the manner in which the Distributor shall keep a register of each facility.

Find here: Electricity Generation: Licensing Exemption and Regulation

Comments can be emailed to Mr Donald Ndobe at [email protected] by no later than Saturday, 1 October 2022.