South Africa cuts red tape for distributed generation

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

October 23, 2026
Scatec and the EBRD have signed a share purchase agreement establishing a renewable energy investment platform for Egypt.
October 22, 2026
Kendall Sustainable Infrastructure (KSI) has started operating three community solar projects totalling 15.8MWdc across New York and Oregon.
October 22, 2026
Danish developer European Energy has signed 30-year agreements with Traditional Owners covering three solar-plus-storage projects in Queensland, Australia, including the 1.1GW Upper Calliope solar PV plant.
October 22, 2026
Solar and battery storage projects have pushed Australia's National Electricity Market (NEM) connection pipeline up 43% in a year to 80.9GW, overtaking the grid's existing 77GW of capacity for the first time.
October 22, 2026
New Zealand solar PV generator Lodestone Energy has started trading on the NZX Main Board after raising NZ$75 million (US$43 million).
October 21, 2026
The EBRD has announced a US$265 million loan for a new 1.2GW solar PV plant, to be co-located with a 600MWh BESS, in Minya, Egypt.

Upcoming Events

Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye