Dr Kgosientsho Ramokgopa, minister of electricity and energy. (Image source: GCIS)
The City of Ekurhuleni has received the greenlight to procure 2 400MW new generation capacity from independent power producers (IPPs).
This was announced by electricity and energy minister Dr Kgosientsho Ramokgopa at a media briefing yesterday, where he indicated the city is following a similar path as the cities of eThekwini and Cape Town.
The announcement comes after the new Ministerial Determination under Section 34 for additional generation capacity was presented by the minister earlier this month.
According to a statement, the energy mix will include 1 237MW of solar photovoltaic, 780MW of natural gas, 183MW of waste-to-energy, and 200MW directed towards innovative energy technologies.
“This is monumental in several ways. First, the City of Ekurhuleni is the first one to make an application for a Ministerial Determination. It took much longer for us to arrive at this stage because of the magnitude of what the city…had applied for and the composition of the energy mix,” said Ramokgopa.
“The second significance is…2 400MW of new generation capacity. eThekwini was 400MW and Cape Town was 220MW. This is at a different scale. What this does, potentially, is to free Ekurhuleni from total dependence [on] Eskom. Of course it will continue to be grid-tied.”
South African metros have upped the ante when it comes to their energy security efforts,amid historical energy woes and constraints faced by power utility Eskom.
The country has increasingly been adding renewable energy sources to the national grid, in a bid to boost energy security.
This, as some of the country’s coal-fired power plants are reaching their end of life. With renewables, the country is also looking to minimise over-reliance on fossil fuels.
Ramokgopa said the city’s move demonstrates government’s commitment to advancing energy security.
“In the context of geopolitics, it is important that we build sufficient headroom to allow the economy to grow. Electricity generation must lead this growth we are anticipating.
“Secondly, it’s about our ambition to produce electricity that is affordable. As we pivot more to renewables, supported by reliable and dispatchable generation, we are likely to achieve this ambition of affordable electricity,” he said.
Ekurhuleni mayor Nkosindiphile Xhakaza signalled that the economic potential is significant.
“The city estimates that the IPP programme will attract approximately R6.2 billion in infrastructure investment. This programme is expected to create much-needed jobs for our people, and we are working towards sod-turning in some projects before the end of this week.
“Our responsibility is to ensure these projects translate into real economic opportunities and measurable benefits for our communities, and benefits to residents and businesses,” he said.
The city estimates the IPP programme could generate R36 billion in savings over 20 years on bulk electricity.
“The projected savings could also ease pressure on municipal finances and help protect residents and businesses from some of the effects of the rising electricity costs.
“We now look forward to translating this process into construction, electricity generation, employment and tangible benefits to our communities,” Xhakaza stated.