Page 35 - Energize August 2021

VIEWS AND OPINION

Gazetting of ERA Schedule 2 amendments

s the global pandemic continues to exacerbate an already strained economy, the
possibility of unpredictable load-shedding is adversely affecting both the citizens of the
Acountry and the economy at large.
“The President and the Minister for Mineral Resources and Energy (DMRE) have recognised
and responded with boldness to ensure we act with appropriate haste and use the opportunity
to rebuild our economy,” says Niveshen Govender, chief operating officer of South Africa’s solar
PV industry body SAPVIA.
On Thursday 12 August, the DMRE gazetted the notice to amend Schedule 2 of the
Electricity Regulation Act (ERA), to increase the licencing threshold for embedded generation
projects from 1 MW to 100 MW.
“Recognising the role of access to energy and energy security at the heart of economic
development, there has been great work undertaken by the DMRE in timeously proposing a
revision to Schedule 2 of the ERA,” says Govender.

At first glance, according to Govender, there are several positive changes in line with industry’s
call for regulatory reform:
• The increase of the licence exemption threshold from 1 MW to 100 MW will impact many
intensive energy users looking to generate their own electricity from alternate technologies. Niveshen Govender
• For the first time we see wheeling being specifically mentioned and considered as its own
principle.
• The schedule has removed reference to the “single customer” and focused on “an end-user “These changes will impact several
customer” which could allow for interpretation from a singular to multiple. generation technologies with the capability
• Third party generation has been recognised with regards to a legal entity that may be an of distributed generation, as well as many
embedded generator who may contract with a distributor and then apply wheeling. private sector commercial and industrial
businesses who so desperately need access
On the other hand, as with previous versions of the ERA Schedule 2, Govender says, the to a constant supply of energy, foster
amendments have missed providing comprehensive definitions, creating unnecessary much needed investment into the energy
ambiguity, and raised more questions of clarity around self-generation, the application of infrastructure and alleviate the continuously
wheeling and trading as well as how adding energy storage to generation projects will impact building pressure on our national power
the requirements. utility, Eskom,” Govender says.
“Is this perhaps a missed opportunity to implement a fresh Schedule 2 that would last in
perpetuity, rather than requiring frequent revisions?”, he asks. Send your comments to
SAPVIA will conduct a thorough analysis of the published amendments against the various rogerl@nowmedia.co.za
expert inputs provided, before
publishing an industry view on
the regulatory changes and the
associated benefits they would
or should bring to the economy. POWER
“We would like to request
that the honourable Minister and ENSURING
his team at the DMRE work with
NERSA, distributors, business AVAILABILITY
and industry to ensure that AND RELIABILTY
the policy directive is clear and
processes are well defined.
“While some bureaucracy
is expected, it is vital that we
create an enabling environment
that encourages more
participation in the sector, to
achieve the desired outcome
of energy security through
mechanisms such as wheeling,
multiple private PPAs and
trading, thereby creating a
liberated energy system.

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