The recent gazetting of amendments to Schedule 2 of the Electricity Regulation Act (ERA) of 2006, which will increase the licensing threshold for embedded generation projects from 1 MW to 100 MW, is not only good news for South Africa’s biggest energy users. It will also bring eventual energy security to smaller businesses and consumers, who can look forward to a reduction in load-shedding and less reliance on Eskom in the future. The main amendment to Schedule 2 of ERA is in paragraph 3.1, which now provides that operating an electricity generation facility, with or without storage, with a point of connection to the transmission or distribution grid, with a capacity of no more than 100 MW, is exempt from licensing by, but will require registration with, NERSA.
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