The National Energy Regulator of South Africa (Nersa) has finally released a consultation paper for an updated Licensing Exemption and Registration Notice for certain categories of small-scale embedded generators (SSEGs), which was submitted to the regulator for its concurrence by Energy Minister Jeff Radebe late last year.

Stakeholders and members of the public have been invited to comment on the draft amendment to the Electricity Regulation Act, with a deadline of May 24 set for submissions.

The notice seeks to replace the November 2017 Licensing Exemption and Registration Notice, which is widely accepted to be “flawed” and which has also caused significant market uncertainty.

The new notice exempts various categories of SSEG plant under 1 MW from the requirement to apply for and hold a licence under the Act, including:

A facility that supplies electricity to a customer who is an end-use customer.

One operated to supply an end-use customer, or related customers by wheeling.

And the operation of a generation facility for demonstration purposes only, whether or not the facility is connected to a transmission or distribution network.

The notice also covers existing generation facilities, including those that filed for registration with the regulator within six months of commencement of the registration process by the regulator.

It also covers the trading of electricity by a reseller.

Separately, Nersa’s electricity subcommittee approved, on May 13, registration applications for 16 SSEGs and one cogenerator in line with the 2017 Licensing Exemption and Registration Notice, which remains in force until the new notice is promulgated.