The eThekwini Municipality intends to reduce its dependence and reliance on the national grid by 20% by 2026, and 40% by 2030, enhancing local resilience against loadshedding. 

Dr Kgosientsho Ramokgopa, the Minister of Electricity and Energy, made the statement when he visited Durban on Friday to inspect the Landfill Gas to Electricity Clean Development Mechanism (CDM) project. 

This programme will allow eThekwini Municipality to procure 400 MW of new generation capacity (100 MW Solar PV and 300 MW Gas to Power (GTP), with a focus on dispatchable, reliable, and low-carbon energy technologies.

Ramokgopa also stated that eThekwini Metro is the first in the country to receive a Section 34 Determination to procure new electricity generation capacity directly from Independent Power Producers (IPPs).

Ramokgopa said the approval of the determination is not just a bureaucratic milestone but a profound signal that the future of electricity generation will be localised, competitive, clean, democratic, and inclusive.

“The embedded generation will reduce eThekwini’s net dependence on Eskom supply. Potentially mitigating Stage 3 load shedding across industrial and commercial zones,” Ramokgopa said. 

Cyril Xaba, eThekwini mayor, said the decision by Ramokgopa to authorise the city to develop new electricity generation capacity marked a critical milestone in the municipal energy strategic roadmap, which seeks to enhance energy security by diversifying energy sources.  Xaba said the project will unlock billions in private investment.

“This is a precedent-setting moment that reinforces the constitutional role of municipalities in ensuring they deliver quality services,” he said. 

ENERGY ROADMAP

• 2021; eThekwini initiated its electricity procurement programme through the Municipal Independent Power Producer Procurement Programme (MPPPP). 
• July 2021; the municipality issued a technology-agnostic Request for Information (RFI) to the market, targeting 400 megawatt (MW) of renewable energy. This move allowed the municipality to engage industry stakeholders, assess investment appetite, and lay the groundwork for meaningful public-private partnerships. 

• 2022; the municipal 400 MW business case received full endorsement from the KwaZulu-Natal Provincial government. The National Treasury approved the project, positioning eThekwini as a national pioneer in municipal-led power procurement.
•  2023, the municipality convened the first Energy Transformation Summit
• 2023; the municipality submitted a Section 34 Determination application, which received the full attention of Ramokgopa
• 2024; October; Ramokgopa issued the draft Section 34 determination to the National Energy Regulator of South Africa (NERSA)

• 2025 March launched public participation launched  
• August 2025; final approval of the Ministerial Determination, which gives eThekwini the green light to move to the next phase of the Request for Proposals (RFP).
• December 2025; the RFP for Solar PV will be issued in December
• September 2027; construction expected to start

Xaba said that the Gas-to-Power RFP will follow in 2026. Ramokgopa added that eThekwini Metro’s bold move to develop internal energy generation capacity to bolster energy security is commendable.  

“We have considered eThekwini Metro’s application for IRP 2019 deviation and Section 34 Determination, allowing the Metro to procure 400MW from IPPs. This includes 100 MW Solar PV, 300MW GTP. This is the first of its kind municipal determination since the Electricity Regulation Act came into effect in 2006,” he said. 

Ramokgopa said that eThekwini’s application met all financial, legal, and technical requirements. 

“The application is backed by a robust business case, sound economic justification, and a long-term energy planning framework. The approval of the application rests on key national priorities, including revenue sustainability,” he said

zainul.dawood@inl.co.za

Source link