EUIG wants wheeling reform to accompany rise in licence-exemption cap to 50 MW
4TH FEBRUARY 2021
BY: TERENCE CREAMER
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In a statement, the EIUG, which represents large mining
On February 2, De Ruyter announced that the utility supported a proposal to raise the licensing threshold to 50 MW, while noting a recent Meridian Economic analysis indicating that the move could unlock 5 000 MW of new distributed-generator
The analysis was completed following a survey of industry practitioners conducted by EE Business
“The role of self-generation in augmenting the constrained electricity supply and the increasing of the 1 MW limit on licence exemption to 50 MW will go a long way in expediting investments in self generation, especially when wheeling mechanisms can also be put in place,” The EIUG said.
“Government must act immediately and amend the Electricity Regulation Act’s (ERA’s) Schedule 2 to effect this proposed change, as well as incorporate the proposed amendments from industry (including from Business
In an earlier statement, Busa argued that changing Schedule 2 of the ERA was in line with the Eskom Social Compact, signed by the social partners represented at the National Economic Development and Labour Council late last year.
The compact states that: “Government must enable self-generation by finalising all necessary legislation expeditiously, and removing any barriers to implementation, including those in respect of wheeling for self-generation/own use, subject to licensing conditions.”
EIUG argued that any change to the exemption cap should be coupled with an update of the wheeling framework “so that there is easier and faster access to the network to connect generating sites to customers”.
Minerals Council South Africa
However, he contended there was also a need to ease or eliminate a range of other hurdles that stood in the way of distributed-generation projects
“In particular, the Eskom process to get a grid-tie connection is particularly cumbersome. There are two parts to the Eskom application process which takes a minimum of seven months – 90 days for the cost estimate and 120 days for the budget quote – and involves multiple fees (and supporting documents). Any slight variation in the part 1 or part 2 of the application triggers an extension of the Eskom time limits,” Baxter noted.