naz? a NATIONAL ENERGY REGULATOR OF SOUTH AFRICA Draft Consultation Paper Rules for Registration of Small-Scale Embedded Generation Published 26 April 2018 Issued by The National Energy Regulator of South Africa 526 Madiba Street ‘Arcadia, Pretoria ‘0007 Contact Details: ‘Tel: 427 (0)12-404 4000 Fax: #27 (0)12 401 4700 wonicnersa.org.za“The National Energy Regulator of South Africa (NERSA) is a regulatory authority ‘established as ajuristic person in Terms of Section 3 ofthe National Energy Regulator ‘Act, 2004 (Act No, 40 of 2004). NERGA's mandate incluses the regulltion of the clectiity supply industry. According to Section 4(i) of the Electricity Regulation Act, 2006 (Act No. 4 of 2008) the ERA}, the Energy Regulator must develop regulations, rules, guidelines, directives and codes of conduct and practice after consultation with licensees, municipalities that reticulate electrcty and such other interested persons ‘as may be necessary, Interested persons, licensees and municipalities are invited to comment on the draft registration rules and the registration process and must submit these comments to NERSA within 30 days. Written comments on the draft rules for registrations of ‘SmallScale Embeded Generation canbe forwarded to ‘moefi.moroeng@nersa org.za; hand-delivered to Kulawula House, 526 Madiba ‘Street, Arcadia, Pretoria, or posted to PO Box 40343, Arcadia, 0083, Pretoria, South ‘Arica, The closing date forthe submission of comments is 31 May 2018 at 16:00. kindly provide the name, address, telephone number, fax number and email address ‘ofthe person or organisation submitting the comments. Comments received after the closing date will not be considered. ‘consultation Paper - Rules fer Repstation of Small Scale Embedded Generation 2Rules for Registration of Small-Scale Embedded Generation Definitions 4. In these Rules: ‘Customer means the customer ofthe Distributor and in the context ofthese rules this is both the consumer of the electricity and producer ofthe electricity Le. the ‘small-scale embeddec generator Distribution System means the network infrastructure operating at nominal voltages of 122K or less; Distributor means a licensee or its appointed representative that constructs, ‘operates and maintains the distribution network: Genorator means a small-scale embedded generator who has entered into a ‘connection agreement with the Distributor operating one or more unit(s) that Is connected to the Distribution System with the aim of importing and exporting ‘lecticity from the same point of connection with a maximum installed capacity of less than MIVA and connected to the national gi Integrated Resource Plan means a resource plan updated from time to time, and ‘established by the natonal sphere of government to give effec to national energy policy. It refers to the coordinated schedule of generation expansion and demand- side intervention programmes, taking into account multiple criteria to meet the ‘electricity demand; NERSA means Natioral Energy Regulator of South Africa; and ‘Small-scale embedded generation (SSEG) means a customer that operates @ {generation facility of ro more than 1 MW and connected at low voltage to a public Distribution System being entitled to a Licence Exemption according to clause 2.1, 22 and 2.3 of the Deparment of Energy Licensing Exemption and Registration Notice. Objects of the Rules 2.To create a regulatory rules to register in terms Licensing Exemption and Registration Notice No, 1281 of 10 November 2017) (Annexure A) and to establish ‘regulatory environment within which the Regulator can effectively control, monitor Consultation Paper - Rules for Registration of Smal Scale Embedded Generation 3‘and enforce the economic regulation of electicty provision with regard to the ‘objectives ofthe Electcty Regulation Act, 2006 (Act No. 4 of 2008) (the ERA\) to: 2, achieve the effective, wffcien, sustainable and oretly development and operation forthe electiciy infrastructure in South Africa facilitate universal access tothe electricity; ensure an affordable and sustainable elecicty industry promote the use of diverse energy sources and energy efficiency, faclitate a far balance between the interests of the customers and end users promote competitiveness and customer end use choice; and improve regulatory predictably CHAPTER PURPOSE AND APPLICATION Purpose of the Rules 4, These rules are aimee at creating the orderly management and treatment of Small. ‘Scale Embedded Generation, ‘Application of the Rules 4, These Rules shal, unless otherwise provided herein, apply to all small-scale embedded generators, as specified by clauses 2.1, 2.2, 2.9, 2.4 and 2.6 of the Department of Energy's Licensing Exemption and Registration Notice. CHAPTER I GENERAL PROVISIONS Generation facilities that are eligible for registration 5. The following generation faclities are eligible for registration as specified by clauses 2,1, 2.2, 2.3, 24 and 2.5 of the Licensing Exemption and Registration Notice: (1) generation faciliy wth an installed capacity of no more than 1 MW that is not ‘connected tothe grid in circumstances specfid inthe Notice; (2) generation facty with an installed capacity of no more than 1 MWY that is Connected to tne gn eicumstances spectied in tne Notice; (9) generation faciliy for own use with a capacity of no more than ‘MW that is not ‘connected tothe grid in ctcumstances spectted inthe Notice; (4) generation faciity used for demonstration purposes only in circumstances specified in the Notice; (6) co-generation in circumstances specified in the Notice ‘consitation Paper - Rules fr Repstation of Small Scale Embeded Generston 4Application requirements to connect SEG 6, (1) No customer with SEG may connect to the Distribution System of a Distibutor without (@) submiting an application for registration to NERSA with the following minimum informaton (i) the description ofthe applicant, (ip the description ofthe proposed SSEG generation technology, Uiyapproval by the licensed distrbutor having control, compliance and decision over the SSEG generation facilty (iv) continued asility to comply with all applicable laws, regulations, codes andlor standards, (9) where applicable, the duration ofthe connection, and (vi) certification by competent authorty/ person, certificate of compliance; () receiving a quotation after application from the Dietrbutor, paying the required connection chargelfees and signing the required connection and use of system agreement and the supply agreement; and (©) ensuring that tre connection and the equipment used is cetitied to comply ‘with all required technical standards and in compliance with al laws. (2) Upon receiving the application and conclusion ofthe customer connection and tuse-of-system agreement wih the Distrbutor, the Distributor will send the information tothe Energy Regulator for registration in a prescribed form andlor registration system. CHAPTER IIL REPORTING ON SSEG INSTALLATIONS 7. The Distributor shat provide to the customer non-discriminatory access to ts Distribution System, except if there are objectively justflable and identifiable grounds that prevent such access. 8, The Distrbutor shall ensure that the connection to the aistribution system by the customer complies with the licence conditions ofthe Distributor, the Grid Code and the National Requirements Specifications, 9. Should the custome: want to increase the supply to above 1M, the Distributor vill redirect the custemer to apply to NERSA for a generation licence, provided that the Distributor agrees with the applicant's request to increase the supply and ‘exemption has been granted by the Department of Energy. 410. These rules do nal apply to installations >1MW. Cconstatin Paper - Rules far Repetaton of Smal-SoaleEmbedied GenerationCHAPTER IV REGISTRATION REQUIREMENTS 11. The distributor shal follow the registration process as outlined in Annexure B, 412.Once the application fo connect has been approved, the Distributor willbe required to provide to the Energy Reguiator with information of such connections on a quarterly basis on the required template, 418. The Distributor shall, :ogether with the submission ofthe Registration Form, report the following parameters of an SSEG according to clauses 2.1, 22, 2.3, 24 and 255 of the Departmert of Energy's Licence Exemption Registration Notice to the Energy Regulator: (1) 1D of installation; (2) generator techrology (e.g. PViwind/biogasidieseluel cel, generation); (3) type of installaton (e.g, ooftop/ground-mountedbuilding integrated); (4) _newiy built capacity or capacity extension of an existing system; (6) licence exemption classification (according to the Licence Exemption Notice); (6) connection agreement; (7) date of commissioning ofthe instalation; (8) tariff applicable to the instalation, it any; (@)_ installed capacty: KW at gid connection point, (10) installed module capacity (PV only): KWp of installed modules; (11) location of SSEG system (street name, house number, city, zip code, GPS. coordinates); (12) whether the system includes storage (yes/no), the type of storage i. battery, fuel cells ete, the Storage capacity in kWh (if yes), the storage for grid tied ‘operation (yes/no); and (13) any other information that might be required by NERSA. ‘Consuitation Paper - Rules fr Reason of Small Scale Emboddod Generation 6CHAPTER V EXCLUSIONS: 414.These Rules do not apply to any installation other than those detailed under clauses 2.1, 2.2,2.3,2.4 and 2.5 of the Department of Energy's Licence Exemption Registration Notice. CHAPTER VI LIABILITY OF THE SSEG GENERATOR 415.Save to where the liability has been apportioned toa specific person, the customer shall be liable for any injury or damage caused or suffered by any person due to the operation of the generation facil ‘Short title and commencement ‘These Rules are called the Rules for Registration of Small Scale Embedded Generation (SSEG) and shall come into operation on the date of publication. “These rules willbe revised from time to time and will be updated accordingly. End CConsiaton Paper -Rule for Reptvan of Smal-Seale Embedded Generation 7ANNEXURE A EY STEPS FOR REGISTRATION PROCESS