South Africa's Energy Regulator Advances Sustainable Energy Future With Key Decisions

Jun 07, 2023

In a significant move towards transforming South Africa’s energy landscape, the National Energy Regulator of South Africa (NERSA) has made key decisions in its 262nd meeting. The decisions encompass diverse aspects of the country’s energy sector and are aimed at fostering sustainability and meeting energy security needs.

The Energy Regulator granted approval for the issuance of a transmission license to the National Transmission Company of South Africa (SOC) Ltd (NTC). Established as a wholly owned subsidiary of Eskom, the NTC will play a pivotal role in the nation’s electricity supply industry. As the Transmission Network Service Provider, System Operator, Transmission System Planner, and Grid Code Secretariat, NTC’s independence will ensure non-discriminatory access to the transmission system, signalling new opportunities for stakeholders and investors. The NTC’s application met all regulatory requirements and aligns with the Government’s objectives, contributing to Eskom’s unbundling trajectory.

Ngonyama Solar (RF) (Pty) Ltd has been approved as the sixth preferred bidder of the Department of Mineral Resources and Energy’s (DMRE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window Six (BW6). With a contracted capacity of 140 MW, Ngonyama Solar (RF) (Pty) Ltd will receive a generation license to operate in line with the Electricity Regulation Act, 2006. The company’s addition brings the total contracted capacity for BW6 to 1,000 MW for solar projects.

Details of the six preferred bidders – all Solar Photovoltaic (PV) technology:

NERSA concurred with the draft ministerial determinations for the procurement of 1,000 MW of New Generation Capacity from the Cross-Border Procurement Programme, aimed at enhancing energy security. This capacity will be procured from utilities and independent power producers within the Southern African Development Community (SADC) region.

Additionally, NERSA approved the draft ministerial determination for the procurement of 2,000 MW of New Generation Capacity from the Load Shedding Reduction Programme for the years 2025 to 2028. The new generation capacity will be established from energy generated by independent power producers.

Furthermore, NERSA concurred with the draft ministerial determination for the procurement of 800 MW of New Generation Capacity from the Emergency Procurement Programme for the years 2029 to 2030. This program will procure capacity from various local generators, including independent power producers.

These decisions mark significant progress in South Africa’s energy transition, fostering sustainable growth and addressing energy security challenges. The implementation of these measures will contribute to the nation’s energy goals, shaping a more resilient and cleaner energy future.