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.

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

September 23, 2025
Australia’s NEM set a new instantaneous renewables share record of 78.6% on 22 September, surpassing the previous day's record of 77.9%.
Premium
September 22, 2025
IREC’s Vaughan Woodruff considers the critical need for state-level reforms in readiness for the next shift in federal policy.
September 22, 2025
The Rural Electrification Agency (REA) of Nigeria has announced plans to build a 1GW solar module manufacturing facility in the country.
September 21, 2025
Lightsource bp has commenced work on a co-located battery energy storage system (BESS) at a 585MWdc solar PV plant in Australia.
September 19, 2025
Artificial intelligence (AI) company Avathon has launched its AI-powered Autonomy Platform to boost profitability in a market that is facing tax and policy challenges. 
September 19, 2025
Spanish oil major Repsol has started commercial operations at its 629MW Outpost solar facility located in Webb County, Texas near Laredo. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA