JOHANNESBURG – The renewables industry has welcomed Eskom CEO Andre de Ruyter’s support for an increased distributed generation license exemption cap.
Last week, in an ENSafrica webinar, de Ruyter supported reforms that allow anyone to build their own generation facilities of up to 50 megawatts (MW) without needing a license.
Photovoltaic Industry Association (SAPVIA) said on Monday that distributed generation can add capacity to the grid, reduce load shedding and create jobs, but there must be policy and regulatory measures.
SAPVIA’s director of operations Nivesh Govender said he has long been engaged in advocating for a systematic relaxation of license thresholds.
“We therefore welcome the utility’s support to raise the license thresholds from 1 MW to 50 MW in order to speed up production distributed by large customers,” said Governder.
“As a key player in the sector, Eskom’s support in this effort should encourage greater haste in regulatory changes from the Ministry of Mineral Resources and Energy (DMRE) and the National Energy Regulator of SA (Nersa ). “
The increased deployment of integrated generation capacity will ease the pressure on Eskom’s already limited supply, which is plagued by frequent blackouts.
South Africa’s energy plan, the Integrated Resource Plan (IRP 2019), removes the need for ministerial approval for distributed generation for its own use above 1 MW before Nersa can process a request for production license.
IRP paves the way for pursuing a diversified energy mix that reduces dependence on one or a few primary energy sources by 2030.
Business Leadership SA (BSA) also said that Eskom’s support for energy reforms was a move that would quickly lead to large investments by companies in their own energy infrastructure.
BSA chief executive Busi Mavuso said that with the clarity of renewable energy timetables, could spur a wave of industrialization of the green economy.
“Clarity on the renewable energy agenda means supporting the successful formula that has enabled four towers so far, one that everyone from banks to construction companies understands,” Mavuso said.
“Introducing uncertainty, especially over the extent of local inputs required, would delay energy security, increase bid costs, and ultimately slow down economic recovery and the process of green industrialization.”
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Renewable energy industry welcomes Eskom’s support for self-generation of electricity
Source link Renewable energy industry welcomes Eskom’s support for self-generation of electricity