South Africa: This Changes Everything - FAQs on President Ramaphosa's Game-Changer On Electricity Generation

opinion

To borrow the title of Naomi Klein's seminal book: this changes everything! President Cyril Ramaphosa's announcement that government is amending Schedule 2 of the Electricity Regulation Act, raising the requirement for Nersa licences from 1MW to 100MW, is a game-changer.

"Holy smoke! Did he just do that?" was the collective exclamation as President Cyril Ramaphosa announced on 10 June 2021 that he was amending Schedule 2 of the Electricity Regulation Act, raising the exemption threshold for the National Energy Regulator of South Africa (Nersa) licensing requirement from 1MW to 100MW.

Some others were probably going: "Can he do that?"

It is safe to say that the decision caught the entire country completely off-guard. Here I want to unpack some quick questions that people have been asking themselves and explain why this is big for the economy and the environment.

So, what is the big announcement?

To borrow the title of Naomi Klein's seminal book: this changes everything!

Put simply, Nersa permits are no longer required for embedded generation projects that fall below the 100MW threshold. In other words, any physical or natural person who is willing and able can set up a power generation plant with capacity of up to...

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