South Africa’s Aggregator Model Transforms Energy Sector

(3 Minutes Read)

The regulatory environment changed dramatically in 2021 when the generation licensing floor was lifted from one megawatt (MW) to 100MW, permitting wheeling to multiple clients under the same project, which was subsequently changed  

South Africa’s energy market has transformed as consumers are looking for new ways to access reliable and affordable electricity more quickly.

The regulatory environment changed dramatically in 2021 when the generation licensing floor was lifted from one megawatt (MW) to 100MW, permitting wheeling to multiple clients under the same project. The 100MW limit was subsequently removed altogether, and projects are now only required to register with the National Energy Regulator of South Africa (Nersa) with no need for a generation licence.

The aggregator model can accelerate the requirements of large energy users to get their energy from green electrons. Cheap renewable energy tariffs, significant changes in the regulatory framework, wheeling, and growing private sector appetite to procure green energy are creating an increasingly viable market for energy aggregators.

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These models promote greater efficiency in energy procurement by aggregating demand from multiple consumers. Energy aggregators enhance energy security and resilience by diversifying the sources of electricity generation and reducing reliance on single power plants.