Electricity wheeling can reduce load-shedding risk if legal, technical uncertainties are addressed

Tariffs and the legal framework governing the wheeling of electricity from independent power producers (IPPs), which are taking advantage of the recently declared 100 MW licence threshold, will be key factors in IPPs’ ability and willingness to feed surplus power into regional and national power grids, according to experts who spoke at a Nedbank Energy Dialogue on September 30. Mineral Resources and Energy Minister Gwede Mantashe gazetted an amendment to Schedule 2 of the Electricity Regulation Act on August 19, following a directive from President Cyril Ramaphosa earlier this year, to increase to 100 MW the licensing threshold for private power producers, as part of government’s effort to reduce load-shedding.