Nersa registers 908MW of new renewable generation capacity

The National Energy Regulator of South Africa (Nersa) says it has registered a total of 98 new generation facilities, amounting to 908 MW of capacity between July and September of its 2023/24 financial year.

Altogether the projects total an investment value of R17.3 billion.

Nersa confirmed this in a statement this week, adding that a total of 68 of the facilities, which amounts to 785MW, are to be connected to Eskom’s network and exported to the national grid.

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Independent energy analyst Chris Yelland told Moneyweb this is a massive development for the future of renewable energy generation in the country and that once the capacity is live, it will play a huge role in reducing the generation burden on struggling power utility Eskom.

“It’s a very good sign, it is a sign that there is an appetite for renewable energy in South Africa… It is a sign that the private sector is coming to the table in a massive way,” said Yelland.

“The reality is that at the moment the only game in town for new generation capacity is wind, solar PV and battery energy storage and really there is nothing else,” he added.

However, Yelland notes that because of the magnitude of the newly registered capacity, it will take time – generally between nine months to two years – for the capacity to be ‘realised’.

Solar leads

Solar Photovoltaic (PV) facilities were most popular with 92 registered during the second quarter (of Nersa’s financial year), while Solar PV with battery energy storage systems made up the rest of the technological mix.

Only seven of the quarter’s new registrations – with a total capacity of 140MW – were earmarked for commercial purposes.

“The total investment value of Solar PV generation facilities is R11.4 billion. Solar PV technology is favourable because it is flexible for small-scale and large-scale generation,” Nersa noted in its statement.

The Free State, North West, Western Cape and the Eastern Cape provinces received the bulk of the newly registered capacity.

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According to the energy regulator, the North West generated the highest investment cost at R5.8 billion, followed by the Western Cape (R3.22 billion) and the Eastern Cape (R3.12 billion), respectively.

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Nhlanhla Gumede, the regulator member responsible for Electricity Generation welcomed the quarter’s performance but also expressed concern that growth in battery storage is not growing at the same pace.

“It is concerning that most of the registered facilities are further deepening the California Duck Curve as they are not coupled with storage. In this regard, it’s recommended that registration applications for generation facilities of variable energy sources be coupled with battery storage,” he said.

Listen to Yelland speaking on SAfm Market Update recently about the growth in private power generation (or read the transcript): 

You can also listen to this podcast on iono.fm here.