Knowledge Hub · regulation

Generation licensing and NERSA registration in South Africa

Grid-connected generation below 100 MW requires NERSA registration, not a full licence. Trading or aggregating power requires a separate trading licence.

ZAReviewed 15 Jun 2026Next review 15 Sept 2026Reform watch

South Africa distinguishes between generation and trading. The 100 MW exemption covers generation — projects at or below 100 MW connected to the grid typically register with NERSA rather than obtaining a full generation licence.

Registration (sub-100 MW, grid-connected) is the standard path for C&I and distributed projects. Indicative timeline is approximately 8–10 weeks, subject to complete documentation. Registration fees are published by NERSA and should be confirmed at submission.

Reselling or aggregating electricity — including acting as a trader between sites — requires a separate NERSA trading licence. Generate-and-self-consume on your own site is not trading; wheeling surplus to another offtaker or selling into a market typically is.

Grid Code compliance and a Connection Agreement with NTCSA (formerly Eskom Transmission), a licensed distributor, or municipality remain binding constraints regardless of registration status.

This is orientation, not legal advice. Confirm the current position with qualified counsel and the relevant regulator (NERSA, ERA, ZERA, etc.).

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