e South African Minister of Energy, Jeff Radebe, purportedly granted a welcome deviation from South Africa’s existing power generation licensing regulations that should see a relaxation of the process, encouraging additional power supply into the local grid.
The change comes amidst growing concern over an already-strained national power supply and its ability to tolerate the increased winter load.
According to Emma Dempster, a Director in the Projects and Energy sector at commercial law firm Cliffe Dekker Hofmeyr, the Minister is reported to have approved a deviation from the existing Integrated Resource Plan 2010-2013 (IRP 2010-2030) for licensing of operation for generation facilities ranging above 1 MW to 10 MW to enable applicants for a generation licence to meet the requirements of section 10(2)(g) of the Electricity Regulation Act (No 4 of 2006) (the Act).
“This is a welcome development for the local energy market and will remove a significant legal hurdle that is currently being faced by the National Energy Regulator (NERSA) when processing generation licence applications,” says Dempster.
She explains that a significant number of projects have stalled in the development phase as a result of difficulties and delays associated with obtaining a generation licence.