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NERSA grants concurrence to second Section 34 ministerial determination, opening the way for further energy procurement

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NERSA grants concurrence to second Section 34 ministerial determination, opening the way for further energy procurement

The National Energy Regulator of South Africa (NERSA) has provided its concurrence to the second Section 34 Ministerial Determination issued by Minister of Mineral Resources and Energy, Mr Gwede Mantashe in February 2020. 

14 Sep 2020 1 min read Energy Alert Article

The capacity allocated through the second Section 34 Determination includes 6,800 MW of wind and solar photovoltaic for the years 2022 – 2024; 513 MW of storage for the year 2022; 3,000 MW of gas to power for the years 2024 – 2027 and 1,500 MW of coal for the years 2023 to 2027. 

NERSA’s concurrence is required in terms of section 34 of the Electricity Regulation Act, 4 of 2006 to enable the Minister to initiate a procurement programme for new generation capacity.

Following NERSA’s concurrence, the Department of Mineral Resources and Energy is able to undertake the procurement of additional electricity capacity in line with the Integrated Resource Plan (IRP 2019), including opening-up the long awaited Bid Round 5 under the Renewable Energy IPP Procurement Programme.

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