Understanding non-compliance

Abstract

As distributed energy resources (DERs) such as solar photovoltaics and battery storage grow in popularity at the consumer level, their proportional role in electricity grids is also increasing. Globally, companies have introduced rules surrounding DER integration. However, circumvention of formal processes is not uncommon, with instances of unauthorized DERs noted in many countries, posing challenges for grid management and power system costs. Now, Josh Dippenaar and Bernard Bekker from Stellenbosch University assess factors affecting DER installation compliance in South Africa, and how differing utility governance approaches may impact the argument for investing in distributed energy sources at the utility level.

Combining utility revenue modelling and a survey engaging South African DER installers, three municipalities in South Africa with their own interconnection policies (Cape Town, Nelson Mandela Bay and Tshwane) are compared and analysed to better understand factors leading to varying levels of DER compliance. The team find that through strong financial incentives for registering DERs, Nelson Mandela Bay has achieved higher compliance levels than Cape Town and Tshwane. Lack of enforcement, long payback periods, lack of trust in utilities, lengthy approval processes and a lack of grid reliability are also found to be important factors impacting DER compliance rates. The findings provide insights into the importance of both early-stage financial support and more efficient registration practices to entice legal registration of DERs as part of a just energy transition.