1. National Energy Regulator of South Africa
NERSA
National Energy Regulator of South Africa
Seminar at SA Energy Storage, SSEG, Micro-Grid and Smart Grid 2018 Conference and Exhibition
Presenter: Dennis Seemela

2. INTRODUCTION
The National Energy Regulator (NERSA) was established on 1 October 2005 in terms of the National Energy Regulator Act, 2004 (Act No. 40 of 2004) to regulate:
Electricity industry (Electricity Regulation Act, 2006 (Act No. 4 of 2006))
Piped-Gas industry (Gas Act, 2001 (Act No. 48 of 2001))`
Petroleum Pipelines industry (Petroleum Pipelines Act, 2003 (Act No. 60 of 2003))
NERSA is a public entity as per the Public Finance Management Act, 1999 (Act No. 1 of 1999) and therefore has to comply with the requirements of this Act.

3. EVIRONMENT-LEGAL MANDATE PARLIAMENT/GOVERNMENT
POLICY
LAW
REGULATIONS
RULES
GOVERNANCE
PARLIAMENT/GOVERNMENT
DEPARTMENT OF ENERGY
NERSA

4. OBJECTS OF THE ACT
To achieve efficient, effective, sustainable & orderly development of the ESI in SA
To safeguard & meet the interests & requirements of present and future electricity customers & end users
To facilitate investments & universal access to electricity
To promote the use of diverse energy sources, energy efficiency, competitiveness & customer choice
To facilitate a fair balance between the interests of customers, licensees, investors & the public

5. BACKGROUND
On 22 September 2011 the Energy Regulator approved Standard Conditions for SSEG’s within municipalities (<100kW)
Municipalities must register and maintain a database of SSEG’s (<100kW) and report to NERSA annually
On 25 February 2015 NERSA published a Consultation Paper on Regulatory Rules on SSEG’s
On 10 April 2015 NERSA conducted public hearing on the Regulatory Rules
The Regulatory Rules could not be published because of lack of Regulation and threshold

6. (OLD) SCHEDULE 2 OF THE ACT:
EXEMPTION FROM OBLIGATION TO APPLY FOR AND HOLD A LICENCE
Any generation plant constructed and operated for demonstration purposes only and not connected to an inter-connected power supply
Any generation plant constructed and operated for own use
Non-grid connected supply of electricity except for commercial use

7. LICENSING EXEMPTION AND REGISTRATION NOTICE NO. 1231
The Notice substitutes the Schedule II of the Act: Exemption from obligation to apply for and hold a licence
The Notice clearly defines threshold for registration and licensing except for co-generation
Excludes any generation plant with installed capacity of more than 1MW (except co-gen)
Any generation plant with outside the Notice must be licensed
Include resale of electricity

8. LICENSING EXEMPTION AND REGISTRATION NOTICE NO. 1231 (cont.)
The Notice requires registration for the following generation facilities of no more than 1 MW:
Connected to the grid in circumstances specified in the Notice
Not connected to the grid in circumstances specified in the Notice
For own use in circumstances specified in the Notice
For demonstration purposes in circumstances specified in the Notice
Co-generation in circumstances specified in the Notice

9. LICENSING EXEMPTION AND REGISTRATION NOTICE NO. 1231 (cont.)
Back-up generation and standby generation for provision of electricity during electricity supply interruptions
The continued operation of an existing generation facility which was exempt from the requirement to apply for and hold a licence under the Act
The continued operation of an existing generation facilities that were in operation prior to the Notice being issued which have declared non-compliance and agreed with NERSA on the timeframe to comply
Distribution connection facility that is connected to a generation facility in circumstances specified in the Notice

10. IMPLEMENATION OF THE NOTICE
Consultation Paper on the Rules for registered activities including a procedure, form and registration fee as per Section 35(3)(h) of the Act
After input received during the consultation process, the Rules including a procedure, form and registration fee will be finalized and published on the NERSA website
An application for registration must be accompanied by the prescribed registration fee

11. IMPLEMENATION OF THE NOTICE (cont.)
NERSA approved a Consultation Paper on Regulatory Rules for SSEG’s on 24 April 2018
NERSA subsequently withdrew the Consultation Paper on 15 June 2018 because of the processes that DOE was undertaking
NERSA received a lot of applications for registration as early as February 2018
The Energy Regulator will consider the Registration Procedure, Form and Registration Certificate on 30 October 2018

12. APPLICATION INFORMATION
Municipal area wherein the SSEG will be operating
Licensed Network Service Provider (NSP)
Location and Geographical GPS coordinates of SSEG
Description, activities and technology of the SSEG
Connection and Use-of-System and/or wheeling Agreements
 Connection Voltage Level (kV)
 Installed capacity of the SSEG (MW / MWp)
 Commercial Operation Date (COD)
 Expected Annual Energy Production (MWh)

13. REGISTRATION PROCESS PHASE I: NSP Approval Process
Applicant
Applies for Connection and Use of System (UOS) to the NSP
NSP
Evaluates and process application for grid stability and any liabilities
Approves Connection and UOS agreements & issues budget quote
Send confirmation letter for connection eligibility to the grid
PHASE I: NSP Approval Process
Applies for Registration to NERSA once approval is obtained from Licensed Distributor
NERSA
Receives application and acknowledges in 3 days
Check completeness and adequacy in 14 days
Prepare submission to Energy Regulator within 60 days
PHASE II: NERSA Approval Process
Enters applicant into database, issues Registration Certificate with a number and send letter of registration confirmation to applicant within 14 days

14. CONDITIONS FOR REGISTRATION
The Regulator may refuse to register such a person or activity:
If the application is not made within the prescribed period or
If the application is not made with the prescribed registration fee and
If the application is contrary to the objectives of the Act

15. COMPLIANCE MONITORING & DISPUTE RESOLUTION
With each and every registered facility NERSA imposes registration conditions which should be complied with
NERSA must ensure and monitor conformance to regulatory requirements
The Registrant must consent to inspection at all reasonable times to be conducted by NERSA or authorised persons
On completion of an audit the Energy Regulator may act on such a report and/or its findings in accordance with the provisions of the Act
NERSA may act as mediator if so requested by both the Registrant and the NSP to settle dispute(s)
Alternatively NERSA may appoint a suitable person to act on its behalf in an attempt to settle dispute(s)

16. THANK YOU
Website:
Tel:
Fax:
Kulawula House
526 Madiba Street
Arcadia
0007