The Electricity Regulation Amendment Bill is expected to realise significant local embedded generation capacity growth by removing the cap on the licensing threshold, but the current version of South Africa’s Integrated Resource Plan (IRP) is a limiting factor. The amendment of Schedule 2 of the Electricity Regulation Act (ERA) that lifted the licensing threshold from 1 MW to 100 MW had an enormous impact on the local electricity supply industry when it came into effect in August last year, says law firm Webber Wentzel partner Jason van der Poel.
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