This Licensing Exemption and Registration Notice essentially indicates that small-scale embedded generation (SSEG) installations under 1MW do not need to apply for a license from NERSA, under the Electricity Regulation Act. The notice provides clarity where there was none. It leaves the governance of these systems to local governments. This requires that local governments have a robust process for enabling, tracking and managing the impacts of these installations on local distribution grids and wider energy systems, including consequences for tariffs and impacts on local municipal finances.

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