BUSA welcomes recent developments regarding NERSA registering new generation facilities, which use the licence exemptions for generators under 100MW.
The fact that registration processes for the sixteen new generation facilities were processed within 19 days is very encouraging for businesses ready to generate energy and is an indication that Business engagements with NERSA are bearing results. It has been a long time coming since the announcement by President Ramaphosa that the licencing exemption threshold under schedule two of the ERA is lifted to 100MW. This amendment goes a long way to unlocking embedded generation contributing to the security of supply, attracting investment, and generating growth.
BUSA believes that upwards of 16000 direct jobs can be created (based on a 50MW threshold). Job creation is more significant under the 100MW programme. We are confident that the economies of scale unlocked by 100MW provide much-needed investment, job creation and development of local industrial capacity.
While this change is well received, BUSA believes every day of delay and load shedding adds to our economic pressures and urges the regulator to publish circulars that unpack the process for engaging in the 100MW programme from application to registration, increasing sector regulatory certainty and confidence.
We welcome the flexibility demonstrated by and determination displayed by Operation Vulindlela in this area. This is a development that should have been underway some time ago. Still, the announcement of the new generation facilities by NERSA is, we hope, the beginning of a trend where NERSA will enable the unblocking of numerous blockages that, if unlocked, significantly increase confidence, attract investment, and contribute to economic growth!