Is it working?

Yes. The DFFE has declared 11 areas as renewable energy development zones and these have seen some development as a result. We continue to monitor to assess whether the zones are effective as planned.

Actions

The process was successfully followed leading to the declaration of the additional REDZs.

Are there plans?

Establishing the REDZ in line with the National Environmental Management Act No. 107 of 1998.

Is it on the agenda?

The REDZ were initially set up in 2018. This phase added to the regions included as REDZs.

Goals

To establish Renewable Energy Development Zones (REDZs) to stimulate activity in the sector by designating certain areas for focused renewable energy plant development. These are intended to benefit from fast-track approval processes with the goal of significant renewable energy expansion.

Is it working?

There is limited information so far on the extent to which this change has enabled renewable energy developers to speed up the process of obtaining EIAs. We continue to monitor the reform to assess its effectiveness.

Actions

Complete - on 5 December 2023, the DFFE published amendments to the National Environmental Management Act in relation to the renewable energy projects. These have now been gazetted. They are available at https://www.dffe.gov.za/sites/default/files/legislations/nema_ea.renewableenergyfacility_g49815gon4143.pdf

Are there plans?

The amendment was drafted, tabled and passed into law.

Is it on the agenda?

This amendment was tabled as part of the DFFE's broader efforts to improve the process of obtaining environmental impact assessments.

Goals

This reform aims to improve access to environmental impact assessments for distribution and transmission servitude approval.

Is it working?

No, there is a long path to follow to work the legislation through parliament before it can become law and become effective.

Actions

Bill has been drafted but must still enter the legislative process at parliament.

Are there plans?

There was a plan is to introduce the omnibus bill in September 2024 but this did not happen. It has now been tabled for phase II of Operation Vulindlela to ensure the legislation progresses.

Is it on the agenda?

The bill is backed by NT and Necom and part of the Operation Vulindlela agenda.

Goals

This omnibus bill is inteded to accelerate the expansion of renewable energy sources by further removing various regulatory impediments to energy projects. It simultaneously amends multiple pieces of legislation.

Is it working?

The ERA came into effect on 1 January 2025. It is in force, with the exception of the reticulation issue. Salga and the Department of Electricity and Energy must still resolve the issue, which may end up in the courts to decide.

Actions

It has been enacted but municipalities are opposing its implementation as they rely on income from electricity distribution. The SA local government association has threatened litigation regiarding the treatment of "reticulation" in the act.

Are there plans?

The legislation was tabled and processed according to plan, though some elements are alleged not to have been subject ot full consultation, particularly the issue of reticulation by municipalities. Schedule 4B of the Constitution grants municipalities the right to reticulate electricity within their areas but it not clear whether this right is exclusive.

Is it on the agenda?

The ERA amendments have been long in the making and were given added impetus by the Energy Action Plan.

Goals

The amendments to the act are intended to broadly liberalise the electricity sector and support its evolution to an open and competitive market, while also supporting Eskom's unbundling.

Is it working?

Complete and fulley effective; even before the cap's complete removal, this reform led to 568.09MW of new generation being registered with Nersa.

Actions

The reforms were implemented and completed.

Are there plans?

The 100MW cap was introduced at a level higher than expected (business had called for a 50MW cap from the then 1MW cap).

Is it on the agenda?

This was an early reform in the work done by the Presidency to accelerate private investment in electricity capacity.

Goals

To increase self-generation by increasing the Nersa licensing threshold to 100MW.

Is it working?

Very effective: the reform has led to 7GW of private generation being registered with Nersa.

Actions

The removal of the cap was announced in July 2022. Draft regulations were released for public comment in September that year and were gazetted in December.

Are there plans?

The plans were formulated as part of the Necom process.

Is it on the agenda?

The removal of the cap followed quickly after the establishment of the 100MW cap, in line with the National Electricty Crisis Committee plans.

Goals

Enables unlimited private sector electricity generation without requiring a license at all, removing the 100MW cap that was implemented only months earlier.