The FF Plus welcomes the Tshwane Metro’s two crucial and progressive policy decisions regarding small-scale power generation and trade, which will soon be open for public participation.
These decisions follow the surge in the demand for embedded small-scale power generation due to the rising costs of electricity and the threat that load shedding poses to the South African power grid.
It is high time to implement such a policy seeing as more and more solar panel systems are being installed in homes and businesses.
It is also in line with the FF Plus’s policy that power generation should be decentralised, empowering communities to become more self-sufficient.
Small-scale local power generation and trade allows residents to sell their surplus electricity to the Metro’s power grid.
This policy is a step in the right direction for creating a framework within which the Metro can explore more business opportunities in this sector, while facilitating a free market so small-scale power producers can transact with one another.
In terms of the small-scale embedded generation policy, the Metro may authorise network connections for small-scale embedded generators of up to 1 MVA without requiring a generation licence.
Installations of 1 MVA or more require a generation licence or a letter of exemption by NERSA, otherwise their application will be rejected.
All installations with the sole aim of generating and selling electricity will also require a NERSA licence, regardless of their size.
The trading policy enables the Metro to facilitate access to the power distribution network, allowing small-scale generators to sell surplus electricity to the Metro.
This policy framework requires the Metro to charge a tariff, in accordance with the Electricity Regulation Act (ERA), for private energy suppliers’ use of its distribution network.
These policy decisions will be opened to public participation soon, allowing residents to make submissions before it is tabled to the Council for final approval.
The FF Plus itself will also engage with stakeholders to provide constructive input.
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