By Charmaine Ndlela
The City of Ekurhuleni has received government approval to procure 2,400MW of privately generated electricity in a programme it estimates could save R36 billion in bulk electricity costs over 20 years.
Electricity and Energy Minister Kgosientsho Ramokgopa announced the approval in Pretoria on Monday, clearing a major regulatory hurdle for a programme expected to attract R16.2 billion in private investment and reduce the city’s reliance on Eskom.
The approval, granted under Section 34 of the Electricity Regulation Act, allows the municipality to pursue electricity procurement from independent power producers (IPPs), using solar, natural gas, waste-to-energy and other generation technologies.
Ekurhuleni currently consumes approximately 2,500MW of electricity, making the planned capacity significant in its efforts to secure alternative sources of supply.
“What this does potentially is to free Ekurhuleni from total dependence on Eskom,” Ramokgopa said.
However, the municipality will remain connected to the national grid, and the amount of electricity supplied by the programme will depend on the completion and performance of individual projects.
The programme provides for 1,237MW of solar photovoltaic generation, including 1,137MW of embedded generation within Ekurhuleni and 100MW procured from external generators through wheeling arrangements.
Natural gas projects will account for another 780MW, comprising 535MW from external generators and 245MW of embedded generation.
A further 183MW has been allocated to waste-to-energy projects, while 200MW will be reserved for innovative generation technologies.
Ramokgopa said waste-to-energy projects could help address pressure on landfill sites in Gauteng while creating opportunities for waste pickers to participate in the formal waste economy.
“If you are to think about this carefully, with the maturity of technology, waste is the new gold,” he said.
The programme will rely on private investment, with IPPs expected to develop and operate the projects rather than the municipality financing the entire programme from its own balance sheet.
Ramokgopa said the initiative would also create opportunities for local manufacturing, employment and broader participation in the energy sector.
“The measure of the success of this programme is not just the megawatts on the grid. Fundamentally, it’s about transformation. It’s about industrialisation. It’s about ownership and community participation,” he said.
Ekurhuleni Executive Mayor Nkosindiphile Doctor Xhakaza said the municipality currently spent more than R22 billion annually on bulk electricity purchases.
The city estimates that the programme could save about R36 billion over 20 years, although actual savings will depend on procurement prices, project performance and other costs.
“While we celebrate the clean interventions, the clean energy, we also celebrate the affordable electricity,” Xhakaza said.
Any reduction in household electricity bills would depend on how the projected savings are reflected in future municipal tariffs and the applicable regulatory approval process.
The municipality expects an initial 357MW of solar photovoltaic capacity to reach commercial operation during the 2027/28 financial year, with the remaining 2,043MW targeted for completion by 2029/30.
Those timelines remain dependent on the successful procurement, development and commissioning of the projects.
Xhakaza said the city intended to move to the next stage of implementation on Thursday, 22 October.
“We now look forward to translating this process into construction, electricity generation, employment, and tangible benefits to our communities,” he said.
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