The National Energy Regulator of South Africa (Nersa) has verified the registration of the first two 100 MW solar photovoltaic projects after a revision to Schedule 2 of the Electricity Regulation Act in August 2021 that allows sub-100MW solar photovoltaic projects to operate without a licence.
Both solar photovoltaic projects are located in the Ditsobotla Local Municipality in the North West province and are being conceived, funded, built, and operated for Tronox Mineral Sands by the Sola Group and its partners. The projects will cost R3.2 billion to construct.
The registration of the first two 100MW solar photovoltaic projects
Rudi Dicks, the head of the Presidency’s project management office, verified the projects’ registration, and Nersa confirmed that they were the first registration of projects greater than 10 MW.
According to Sola, the registration process took 73 days. African Rainbow Energy, Sola’s largest shareholder and equity partner in the solar projects, reported that the developments had received significant assistance from the Presidency, which has been working to reduce the remaining red tape preventing such projects from obtaining registration through Operation Vulindlela.
Dicks previously announced that different systemic and project-specific initiatives are being taken to unlock an investment pipeline of 58 projects with a total energy-producing capacity of 4 547 MW and a total investment value of R54 billion. Independent power providers (IPPs) are pursuing these initiatives in collaboration with miners and other energy-intensive businesses.
battling Eskom for approval of EIA and budget bids for grid connection
Aside from Nersa registration, the projects are also battling Eskom for approval of environmental impact assessment (EIA) and budget bids for grid connection. Eskom CEO André de Ruyter announced that the utility’s Grid Access Unit had been strengthened to ensure the flow of cost-estimate letters and budget quotes for the projects, while Forestry, Fisheries, and Environment Minister Barbara Creecy reports that she has written to provincial environment MECs to inquire whether they require any assistance in processing EIAs.
According to Sola, the projects’ financial completion is due in July, after which the projects, which have a 30-year estimated life, would require a 14-month building time before commencing commercial operation.
