Legal and regulatory reforms

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September 15, 2025

ERA Bill/Act

The Electricity Regulation Amendment Bill was signed by the President in August 2024 and came into effect on 1 January 2025. It contains numerous reforms and initiatives to enable the transformation of the country’s electricity into a competitve market under a Transmission System Operator. Full implementation, however, is being held up by opposition from municipalities,…

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Energy Security Bill

This legislation is backed by National Treasury and the National Energy Crisis Committee (Necom), which sits in the Presidency, forming part of the Operation Vulindlela agenda.

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Raising cap on self-generation to 100MW threshold

The declaration made by President Cyril Ramaphosa on 10 June 2021 liberalised a major portion of the electricity supply sector. Ramaphosa raised South Africa’s 10MW regulatory cap on electricity self-generation, also known as “embedded generation”, to 100MW. This enabled private companies to move forward with long-delayed projects without having to worry about over-burdensome licensing requirements….

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Removal of 100MW threshold

The 100MW cap on private generation projects was removed in July 2022 leading to an increased number of private generation projects. This move has increased competitiveness in pricing as, together with wheeling arrangements, private operators can now build and supply direct to customers. Private generation projects registered with Nersa have surpassed the 7GW markTo date…

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Additional renewable energy development zones

In March 2021, then Environment, Forestry and Fisheries Minister Barbara Creecy signed a notice in the Government Gazette designating three more geographic areas as renewable energy development zones (REDZs): Emalahleni, Klerksdorp and Beaufort West. They join the eight zones that were earlier designated: Overberg, Komsberg, Cookhouse, Stormberg, Kimberley, Vryberg, Upington and Springbok, bringing the total…

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DFFE EIA permitting regime change

This reform aims to speed up environmental impact asssessments for renewable energy plants. A proponent must ask Eskom for a consent letter attesting to the fact that its facility’s planned design will not unduly impede access to transmission or distribution facilities. If it receives no response in 45 days, Eskom is deemed to have no…

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