In a recent announcement, the National Energy Regulator of South Africa (NERSA) declared the registration of 124 generation facilities during the third quarter (October to December) of the 2023/24 Financial Year. This development brings a cumulative capacity of 605MW and a substantial investment value of R7.8 billion into the country’s energy sector.
The breakdown of the registered facilities reveals a dominance of solar photovoltaic (PV) technology, with 122 facilities harnessing this renewable energy source. Additionally, two facilities incorporate Solar PV with Battery Energy Storage System (BESS), showcasing a growing interest in advanced energy storage solutions.
Of note, three of the registered facilities are intended for commercial purposes, boasting a combined capacity of 77MW and a noteworthy investment cost of R1733 million. Notably, NERSA efficiently processed all these applications within an average of seven working days.
However, concerns have been raised by NERSA regarding the significant number of registered facilities lacking storage, exacerbating the ‘California Duck Curve.’ Mr. Nhlanhla Gumede, the Regulator Member responsible for electricity regulation at NERSA, emphasized the critical need for future generation facility applications to integrate battery storage, particularly for variable energy sources.
The geographical distribution of the new generation facilities indicates the Western Cape, Gauteng, and KwaZulu-Natal as the top three provinces with the highest number of registrations. In terms of installed capacity and investment value, North West, Limpopo, and Mpumalanga emerge as the leading provinces.
The North West Province stands out, contributing the highest investment cost of R3.5 billion and an installed capacity of 372MW. This can be attributed to the impact of mining activities within the province.
In terms of grid connectivity, 86 generation facilities are linked to the Eskom network, generating a total of 568MW, with a collective investment cost of R7.2 billion. Another 38 facilities are connected to municipal distribution networks, producing a total of 37MW and an investment cost of R500 million.
Since the inception of the registration regime in 2018, NERSA has registered a total of 1087 generation facilities. Detailed information on the 124 new registered generation facilities is available on the NERSA website.
This significant milestone marks a stride forward in South Africa’s commitment to renewable energy and sustainable development, positioning the nation as a key player in the global transition towards a greener and more resilient energy landscape.
