The National Energy Regulator of South Africa (NERSA) has moved to provide clarity on the regulatory requirements for small-scale embedded generation (SSEG) following an article published by the Organisation Undoing Tax Abuse (OUTA) that claimed that members of the public had been threatened with fines or disconnection if they did not register their SSEG systems.
“Nersa wishes to clarify the applicable regulatory position to avoid public confusion and ensure that electricity consumers, installers and other stakeholders are correctly informed of the legal requirements governing embedded generation.
“According to the Electricity Regulation Act of 2006 (as amended), read with the Exemption and Registration Notice, the requirement to register an embedded generation facility is determined by whether the installation has a point of connection to the electricity grid and its installed capacity and not by whether electricity is exported to the grid or consumed on site,” the regulator said in a statement.
“Nersa wishes to clarify the applicable regulatory position to avoid public confusion and ensure that electricity consumers, installers and other stakeholders are correctly informed of the legal requirements governing embedded generation.
“According to the Electricity Regulation Act of 2006 (as amended), read with the Exemption and Registration Notice, the requirement to register an embedded generation facility is determined by whether the installation has a point of connection to the electricity grid and its installed capacity and not by whether electricity is exported to the grid or consumed on site,” the regulator said in a statement.
What this means
- Small-scale embedded generation facilities with an installed capacity of 100kW or less, and with a point of connection to the electricity grid, are required to register with the relevant distributor (Eskom or the applicable licensed municipality).
- Embedded generation facilities with an installed capacity of more than 100kW and a point of connection to the grid are required to register directly with Nersa.
“Embedded generation facilities without a point of connection to the electricity grid are exempt from registration requirements.
“These regulatory requirements exist to support the safe, reliable and efficient operation of the electricity system, including compliance with applicable technical standards, system planning and network protection.
“While a certificate of compliance confirms that an installation meets electrical safety requirements, registration serves a distinct regulatory purpose and does not duplicate safety certification processes,” the statement continued.
The regulator outlined the purpose behind these rules.
“Nersa emphasises that registration is not intended to discourage the uptake of renewable energy technologies, but rather to ensure that the integration of embedded generation occurs in a manner that protects the integrity of the electricity network and the interests of all electricity users.
“Nersa remains committed to enabling South Africa’s transition to a more diverse and sustainable electricity supply while ensuring compliance with the legislative and regulatory framework.
“Stakeholders are encouraged to engage with their licensed distributors or Nersa directly for accurate guidance on registration requirements,” the statement concluded.
