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Nersa permitted to grant above 1 MW licences without Ministerial approval

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Nersa permitted to grant above 1 MW licences without Ministerial approval

30th October 2020

By: Marleny Arnoldi
Creamer Media Online Writer

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The National Energy Regulator of South Africa (Nersa) has been granted permission to process licence applications for self-generation facilities of above 1 MW, even if they are not in compliance with the Integrated Resource Plan 2019 (IRP 2019).

This approval, which was granted by Mineral Resources and Energy Minister Gwede Mantashe on February 1 this year, means that prospective applicants are no longer required to obtain Ministerial approval for deviation from the IRP 2019 before applying to Nersa for a licence.

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The approval granted is applicable to generation facilities that are connected to the national grid, in circumstances in which the generation facility supplies electricity to a single customer and there is no wheeling of that electricity through the national grid.

Approval may also be granted to a generation facility that is connected to the national grid, in circumstances in which the generation facility is operated solely to supply a single customer or related customers by transporting electricity through the national grid where wheeling arrangements are in place between all affected parties.

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However, the approval by the Minister in the above generation facility categories excludes those that involve local government – provinces or municipalities – or supply to local government, as these will be addressed separately.

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