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Green light for licence applications for self-generation facilities of above 1MW

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Source: Agri SA media release, 10 November 2020, photo credit: WWWO

Agri SA welcomes the Minister of Mineral Resources and Energy’s approval for the National Energy Regulator of South Africa (NERSA) to proceed and process licence applications for self-generation facilities of above 1MW.

The approval 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 and this bodes well for the agricultural sector as farmers will now be able to put up renewable energy sources above 1MW.

The approval also makes provision for wheeling arrangements and with the removal of regulatory and administrative constraints, an opportunity presents itself for Eskom to adjust its internal processes to accommodate the latest development.Given the electricity constraints faced by the country, we are of the opinion that this is a positive stride towards alleviating pressure from ESKOM, as independent producers enter the market.

A stable power supply is imperative for development and plays a critical part in economic growth, which is desperately needed by our country to tackle the social ills faced and as Agri SA we believe agriculture still remains a key sector in achieving this goal.Agri SA and its affiliated members remain committed in support for the timeous processing of licensing applications to ensure security of supply.

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