Although national government has opened the door for municipalities to procure electricity from independent power producers (IPPs), a lot of “regulatory ironing out” still needs to happen before power purchase agreements (PPAs) can be signed.
In May last year, the Energy Minister gave permission for the National Energy Regulator of South Africa (Nersa) to licence 500 MW of small-scale embedded generation (SSEG) projects, sized between 1 MW and 10 MW, without the need for the Minister to sign it off.
