The Electricity Regulation Amendment Act (ERAA) marks a transformative shift in South Africa’s energy landscape, aiming to foster a more competitive and decentralised electricity market. It builds on interim reforms introduced since 2021, which initially allowed private generation projects of up to 100 MW without requiring a license from the National Energy Regulator of South Africa (NERSA). These changes unlocked a significant pipeline of private generation and enabled energy wheeling to multiple customers.

This publication is an expert commentary on the role of municipalities with the introduction of this legislation.