Plan to free Ekurhuleni from Eskom and save municipality R36bn gets the green light
The City of Ekurhuleni has been granted permission to procure 2 400MW of independently generated electricity from the private sector.
Ekurhuleni municipality has received approval to commence an electricity generation programme that will significantly reduce its reliance on Eskom. Minister of Electricity and Energy, Kgosientho Ramakgopa, announced Monday that the municipality's Ministerial Determination for Independent Power Producers (IPP) has been approved. This programme is anticipated to attract over R16 billion in private-sector investment, generating approximately 95% of Ekurhuleni's existing electricity demand.
Ramakgopa emphasized that the municipality will not incur any expenses from its funds, instead redirecting capital to other pressing needs while leveraging private sector investment to execute the plan.
The programme's initial phases are scheduled to begin in 2027, with complete operational capacity expected by 2030. Ekurhuleni currently consumes around 2,500MW of electricity daily, and the municipality has granted Section 34 application for 2,400MW of independently generated energy. Roughly 1,240MW will be sourced from solar photovoltaic installations, 780MW from natural gas, and 180MW from waste-to-energy initiatives.
The minister expressed particular satisfaction with the waste-to-energy component, stating that it will contribute to the development of a burgeoning waste economy. Ramakgopa assured that the generated power will remain interconnected with the grid but will be produced within Ekurhuleni's boundaries. The programme is projected to create approximately 1,400MW of energy on-site.
Ekurhuleni's mayor, Nkosindiphile Xhakaza, stated that the municipality would save an estimated R36 billion over two decades. The first stages of the programme are due for inauguration this week, with 75 partners awaiting approval. Xhakaza highlighted that the initiative will generate employment opportunities for the local populace. Ekurhuleni was the first municipality to apply for ministerial determination, although its application was scrutinized extensively due to its size.
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