Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Determinations under Section 34(1) of the Act

Determination relating to New Generation Capacity

Notice No. 3257 of 2023
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Notice No. 3257

6 April 2023

GG 48402

 

Department of Mineral Resources and Energy

 

The Minister of Mineral Resources and Energy ("the Minister"), in consultation with the National Energy Regulator of South Africa ("NERSA"), acting under section 34(1) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (as amended) (the ERA) and the Electricity Regulations on New Generation Capacity (published as GNR. 399 in Government Gazette No. 34262 dated 04 May 2011) ("Regulations"), has determined as follows:

 

1.that new generation capacity is needed to be procured to contribute towards energy security, accordingly, 14 771 megawatts (MW) should be procured to be generated from renewable Energy and Energy Storage sources as described in paragraph 2 below, which is in accordance with the capacity allocated to those energy sources, under the headings "Storage"; "PV" and "Wind", for the years 2024 to 2030, in Table 5 of the Integrated Resource Plan for Electricity 2019 - 2030 (published as GN1360 of 18 October 2019 in Government Gazette No. 42784)("IRP 2019");

 

2.the new generation capacity determined to be necessary as per paragraph 1 above ("the new generation capacity") shall be generated in accordance with following MW allocation per technology:
a.Solar PV - 3940 MW;
b.Wind - 9600 MW; and
c.Energy Storage - 1231 MW

 

3.electricity produced from the new generation capacity ("the electricity") shall be procured through one or more tendering procedures which are fair, equitable, transparent, competitive and cost-effective and shall constitute IPP procurement programmes as contemplated in the Regulations ("procurement programmes").

 

4.the procurement programmes shall target connection to the Grid for the new generation capacity as soon as reasonably possible in line with the timetable set out in Table 5 of the IRP 2019. Deviations from the timetable set out in Table 5 are permitted to the extent necessary considering all relevant factors including the time required for efficient procurement and the required construction timelines for such new generation capacity facility.

 

5.the electricity may only be sold to the entity designated as the buyer in paragraph 8 below, and only in accordance with the power purchase agreements and other project agreements to be concluded during the procurement  programmes.

 

6.the procurer in respect of the procurement programmes will be the Department of Mineral Resources and Energy.

 

7.the role of the procurer will be to conduct the procurement programmes, including preparing any requests for proposals and/or related and associated documentation, negotiating the power purchase agreements, facilitating the conclusion of the other projects agreements, and facilitating the satisfaction of any conditions precedent to financial close which are within its control.

 

8.the electricity must be purchased by Eskom Holdings SOC Limited; and

 

9.the electricity must be purchased from independent power producers.

 

 

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