Energy regulator Nersa said it registered 124 power-generation facilities in the final three months of 2023, with total planned capacity of 605MW and committed investment of R7.8-billion.
Three generation facilities were registered for commercial purposes, with a combined capacity of 77MW and an investment cost of R1.73-billion.
The facilities consist of solar photovoltaic (PV) and solar PV with battery energy storage systems.
Solar PV generation was the most favoured technology, with 122 generation such facilities registered in the final quarter of last year for a total capacity of 604MW.
However, battery storage technology has not reached maturity in the South African electricity supply industry, with only two generation facilities – a total capacity of 1MW and investment value of R4-million – registered during the three-month period, Nersa said. This may be due to the high cost of battery storage systems and their relative newness in the market.
Nersa said it is concerned about the high number of registered facilities that are not coupled with storage. The regulator’s Nhlanhla Gumede emphasised that there is a critical need for generation facilities of variable energy sources to be coupled with battery storage.
Top provinces
The three provinces with the highest number of new registered generation facilities are the Western Cape, Gauteng and KwaZulu-Natal, followed by the Eastern Cape. However, in terms of installed capacity and investment value, the top three provinces are North West, Limpopo and Mpumalanga.
North West generated the highest investment value for the quarter, at R3.5-billion, with an installed capacity of 372MW, attributed to mining activities in the province.
Read: Move aside, Nersa! Let the market set electricity prices
Regarding the energy exported through the national grid, 86 generation facilities are connected to the Eskom network and generate a total of 568MW, with a total investment cost of R7.2-billion.
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A total of 38 generation facilities are connected to the municipal distribution network and generate 37MW, with an investment cost of R500-million. The average investment cost for the final quarter of 2023 came in at R12.82/kWh.
Since 2018, Nersa has registered 1 087 generation facilities. — (c) 2024 NewsCentral Media