South Africa cuts red tape for distributed generation

May 21, 2019
Facebook
Twitter
LinkedIn
Reddit
Email
South African PV growth to 2.5GW last year has mostly come via utility-scale projects (Credit: Droogfontein)

PV representatives have hailed South Africa’s decision to speed up the authorisation process for a large chunk of small-scale embedded generation (SSEG) projects.

Trade body SAPVIA welcomed this week an order by Energy minister Jeff Radebe for regulator NERSA to directly green-light up to 500MW of these schemes, without the need for ministerial go-ahead.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The move – outlined by Radebe in a letter to NERSA earlier in May – will “provide some relief to frustrated businesses”, SAPVIA programme manager Niveshen Govender said in a statement.

In South Africa, SSEG schemes fall within the 1-10MW capacity range and are predominantly solar PV plants, with wind and biogas as secondary technologies.

A 1GW pipeline of such projects has awaited approvals “for years”, SAPVIA believes. A failure by NERSA and the Department of Energy to grant licences has triggered delays and constraints for “hundreds” of projects, the trade body argued.

Progress towards 5.67GW-by-2030 solar goal

In the months leading up to Radebe’s order, the new SSEG regime proposed by NERSA sparked opposition from some quarters. The obligation to register all projects – off-grid included – and unclear rules for licensing fees will hinder both the energy sector and job creation, IPP NRG said last May.

The controversy is one of a number witnessed by South African renewables in recent years. Earlier in 2019, a spat broke out when the government shared plans to renegotiate old IPP contracts with Eskom to help the utility giant avert financial disaster.

Rows aside, solar PV deployment has continued apace in recent years, with IRENA finding capacity increases between 2016 (1.97GW), 2017 (2.1GW) and 2018 (2.5GW). The country's long-term plan is to hit the 5.67GW solar capacity mark by 2030.

A recent study by German Solar Association (BSW-Solar) and the Becquerel Institute, released during Intersolar, singled South Africa out as a continent-wide example of sound policies to promote local solar manufacturing.

Read Next

March 25, 2026
Spanish independent power producer (IPP) Zelestra has secured US$600 million in green financing for two solar PV projects totalling 440MW in Texas.
March 25, 2026
Indian solar PV manufacturer Waaree Energies is developing a INR39 billion (US$415 million) solar glass manufacturing facility in India.
March 25, 2026
Ceigall signs two PPAs worth US$145 million; Adani Green Energy commissions 510.1MW of renewable energy capacity at its Khavda site; Coal India extends a corporate guarantee for a 875MW solar project in Rajasthan.
March 25, 2026
Drawing on multiple field inspections, James Whittmore of Enertis Applus+ discusses some of the common problems emerging in the run-up to the US’s July project safe harbour deadline.
March 25, 2026
Enervest has commenced construction of a 500kW floating solar array at Wannon Water's Brierly Basin in Warrnambool, Victoria.
March 24, 2026
Sunraycer has signed long-term power purchase agreements with Google for its Lupinus and Lupinus 2 solar projects in Texas.

Upcoming Events

Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland