Page 48 - Energize February 2022

TECHNICAL

The registration and application

processes for embedded

generation connection

by Argon Poorun and Jack Radmore, GreenCape

This article provides information on the registration and application for connection processes for embedded
generation (1 Megawatt (MW) to 100 MW) as per the Amended Schedule 2 of the Electricity Regulation Act 4 of 2006
on 5 October 2021. It is the responsibility of local installers/developers to ensure that their clients are informed of the
correct procedure to avoid repercussions in the future.

he South African embedded Africa’s total electricity demand. The remaining 5% of demand is met through municipalities,
generation market has grown imports and independent power producers (IPP).
Tsignificantly over the last six years Energy demand has distinctly flattened since 2010, resulting in reduced demand for
to reach an estimated installed capacity coal-based electricity. Over more than ten years, a historic supply and demand imbalance in
of 1,5 GW in 2021. Projects of less than South Africa’s single buyer energy model resulted in intensive load shedding, experienced
1 MW have largely driven this to date. country-wide from 2008 to 2015 and again during 2019, 2020 and 2021.
The national regulatory environment has According to the Council for Scientific and Industrial Research (CSIR), South Africa
struggled to keep pace with this growing experienced loadshedding for 650 hours in H1-2021 (15% of the time), wherein 963
market. This gap between local market GWh of estimated energy was shed (mostly Stage 2 loadshedding). This is 76% of the
innovation and national regulations has total loadshedding experienced during 2020, which indicates that 2021 will be the worst
led to stakeholder uncertainty, increased loadshedding year to-date.
project risk, and ultimately increased The extent of loadshedding experienced was largely driven by the existing coal fleet’s
unregistered systems. declining Energy Availability Factor (EAF). Overall, the EAF was 61.3% for H1-2021 (relative
In an attempt to maximise the positive to 65% in 2020 and 66.9% in 2019). A concerning shift of the unplanned outage component
impact potential of this market, align of the EAF has also been highlighted where unplanned outages of up to 15 300 MW were
policy with market changes and create experienced and were greater than 10 000 MW for more than 80% of H1-2021.
market certainty, the Department of
Mineral Resources and Energy gazetted Embedded generation
the Amended Schedule 2 of the Electricity The national embedded generation market for installations, operation and maintenance of
Regulation Act 4 of 2006 on 5 October rooftop solar PV has grown over the last decade. Rising electricity tariffs, decreasing solar
2021 (third Amendment). The Amendment PV costs and energy security remain the main drivers of this market. In 2021 the market
increases the threshold for embedded shows signs of accelerating as loadshedding continues amidst electricity price increases and
generation from 1 MW to 100 MW cheaper renewable energy.
without a license. The intervention to It is estimated that there is a total of 1,5 GWp of installed solar PV rooftop systems
reform the electricity regulation act has throughout South Africa, with close to 400 MWp of rooftop solar PV installed in South Africa
been hailed as a positive way forward in the last 12 months. The total annual available market could continue to grow at this rate
by the energy sector and industry across to a saturation point of approximately 500 MWp installed per year, reaching a total of 7,5
the board. It is envisaged that this step GWp of installed capacity by 2035.
will unlock significant investment in new One of the barriers in the market is stakeholder uncertainty and increased project risk
generation capacity. on the back of the indistinct regulatory landscape. The lack of clarity will impact both future
projects and projects already completed. This is particularly true when it comes to the
South African energy landscape licensing and registration of embedded generation systems. If installed systems are found
South Africa’s electricity demand is not to be correctly licensed or registered, then customers can be charged a service fee for
currently dominated by coal-fired power the disconnection of unauthorised connections.
generation stations, primarily owned and The supply of electricity to the property in question may also be disconnected. It will
operated by Eskom, the national power only be reconnected once the relevant authority is satisfied that the system is disconnected,
utility. Eskom supplies about 95% of South decommissioned or authorised and that the service fee has been paid.

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