The Minister of Mineral Resources and Energy, Mr Gwede Mantashe has approved the National Energy Regulator of South Africa (NERSA), to proceed and process licence applications for self-generation facilities of above 1MW. The approval means that prospective applicants are no longer required to obtain Ministerial approval for deviation from the Integrated Resource Plan 2019 (IRP 2019) before applying to NERSA for a licence. This development is very positive for our members as they will now be able to establish renewable energy sources above 1MW if they are interested. The approval also makes provision for wheeling arrangements (the scheduling of the energy transfer from one balancing authority to another). With the removal of regulatory and administrative constraints, an opportunity presents itself for Eskom to adjust its internal processes to accommodate the latest development.
We believe these new developments could address the constraints on our national energy network as the entrance of independent producers into the market has been made more workable. A stable and more cost-effective power supply is imperative to support the recovery of our economy after the impact of Covid-19.