Organised agriculture welcome Pres Ramaphosa eases of red tape for independent power providers

Source: Radio 702, 10 June 2021, photo credit: Frost & Sullivan

President Cyril Ramaphosa has announced an amendment to the Electricity Regulation Act that will make it easier for independent power providers to generate power and even sell it back into the grid.

Speaking during a live-streamed briefing a little earlier, Ramaphosa announced that government will amend schedule two of the act to raise the exemption threshold from 1 megawatt to 100 megawatts.

That means power producers will be able to produce power without going through a long drawn-out process with the energy regulator.

“Generators will also be allowed to wheel electricity through the grid subject to wheeling charges and connection agreements with Eskom mand relevant municipalities,” Ramaphosa said.

Addressing the media on a day when the nation’s labouring under stage three power cuts, the president acknowledged the role uncertain power supply has played in the nation’s economic state.

“We are in the midst of the worst economic crisis in our country’s recent history.”

The amendment to schedule two will allow independent power producers to generate up to 100MW of electricity without having to obtain a license from the national energy regulator.

They will also then be able to sell excess power back into the national grid but if they wish to do that, they will still need a permit to ensure they comply with grid requirements.

“This will ensure that we’re able to bring online as much new capacity as possible without compromising the integrity and stability of our energy system.”

The president also confirmed municipalities will be empowered to formulate their own power mix and buy power from independent producers in order to keep the lights on. Ramaphosa has promised the amendment will be published within 60 days.


Agbiz welcomes the move towards 100MW exemption for energy generation.
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Agri SA welcomes the announcement by President Cyril Ramaphosa to amend Schedule 2 of the Electricity Regulation Act.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.