eThekwini ratepayers were assured that the Landfill Gas to Electricity Clean Development Mechanism (CDM) project was financially sound and had an economic benefit.  

eThekwini mayor Cyril Xaba made the assurance during the visit to the project site in Durban by the minister of Electricity and Energy Dr Kgosientsho Ramokgopa, on Friday. Ramokgopa also announced the outcome of the Section 34 Ministerial Determination giving the municipality the go-ahead to procure new electricity generation capacity directly from Independent Power Producers.

Xaba stated that preliminary modelling indicates savings of approximately R5 billion throughout the Power Purchase Agreements (PPAs), translating to around R250 million in annual savings.

“These are savings we can redirect to the upgrading of infrastructure for basic services that will directly benefit our residents,” he said. 

Xaba explained that this programme is catalytic as it is projected to unlock R8.5 billion in private investment and boost regional industrial activity. He said it will also create an estimated 2,200 jobs during construction and operation phases. 

“This initiative will also empower small businesses and promote inclusive enterprise and supplier development. Therefore, this is not an abstract policy document; it is a tangible plan that will bring meaningful change to our communities,” Xaba said. 

From an energy security standpoint, Xaba stated that once fully operational, the new capacity will reduce eThekwini’s reliance on the national grid by 18%, significantly cushioning us from up to Stage 3 load shedding. During this period, the economy can stay productive, and hospitals, schools, and police stations will continue operating without any disruption.

The project supports both the Climate Action Plan and South Africa’s Nationally Determined Contributions (NDCs) under the Paris Agreement. It is expected to avoid 250,000 tonnes of CO₂-equivalent emissions annually, a significant step towards achieving a just transition and low-carbon emissions.

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 said eThekwini Metro’s bold move to develop internal energy generation capacity to bolster energy security is commendable. He said that the Ministerial Determination is in line with the department’s broader electricity reforms and the Just Energy Transition.

Ramokgopa added that the embedded generation will reduce eThekwini’s net dependence on Eskom supply. Potentially mitigating against Stage 3 load shedding across industrial and commercial zones

Asad Gaffar, chairperson of eThekwini Ratepayers Protest Movement (ERPM) described the project as a move in the right direction, provided proper controls are put in place.

“There must be no tenderpreneurship opportunities and no corruption in the process. There is a need for an additional electricity supply, which, unfortunately, Eskom cannot provide at this stage. This will also be good for investor confidence,” Gaffar said. 

Norman Gilbert, chairperson of the Bluff Ratepayers and Residents Association, welcomed the news of this ambitious programme and the clear economic benefits it promises for the city.

Gilbert said that the prospect of creating over 2,200 jobs, unlocking R8.5 billion in private investment, and stimulating regional industry is an incredible opportunity for Durban’s people and economy.

“If the ultimate goal of reducing the electricity tariff is achieved, it will bring much-needed relief to households whose budgets are already under severe strain. For many residents, electricity has simply become unaffordable, and this initiative could restore the dignity that reliable and affordable power brings to daily life,” Gilbert stated. 

He described the project as forward-thinking, results-driven action that can transform the communities, create jobs, grow the economy, and improve the quality of life for all residents.

Ish Prahladh, chairperson of the eThekwini Residents and Ratepayers Association (ERRA), said there must be a saving in the long run for residents. He said the project, if it goes ahead, will be a game-changer and will be a challenge to Eskom.

“The project must not be derailed. Eskom needs an opposition so that it can reduce electricity prices,” he said.  

zainul.dawood@inl.co.za

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