Durban businesses raise concerns over eThekwini Municipality's new energy initiative
Image: Sibonelo Ngcobo / Independent Newspapers
The election timelines, a poor track record of delivery, and maintenance of infrastructure, were a concern for businesses and civic organisations following the approval for eThekwini Municipality to procure new electricity generation capacity directly from Independent Power Producers (IPPs) on Friday.
Electricity and Energy Minister Dr Kgosientso Ramokgopa authorised the city to develop new electricity generation capacity through a Section 34 Ministerial Determination. eThekwini became the first metro in the country to receive this determination to procure new generation capacity to meet its growing energy demands.
Cyril Xaba, eThekwini Municipality mayor, said this programme will allow EM 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. Our energy mix is clearly articulated in our Integrated Development Plan (IDP).
'We want to assure our ratepayers that this programme is financially sound,' he said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
Allison Schoeman, chairperson, eThekwini United Ratepayers, Business and Civics Organisation (EURBCO), and vice-chair of the Bluff Ratepayers and Residents Association (BRRA), had a critical view.
The EURBCO recognised this as a potentially historic step towards greater energy security and diversification for the municipality.
Schoeman said if implemented effectively, it could reduce over-reliance on the national grid, protect residents from higher stages of load shedding, and create much-needed jobs and investment opportunities.
'We welcome the vision of a decentralised, resilient, and lower-carbon municipal energy system. In principle, this is the kind of forward-thinking action our city desperately needs, especially given the national energy challenges we all face,' she said.
However, Schoeman said that this optimism is tempered by serious concerns.
'The city's current failures in maintaining basic infrastructure, poor service delivery, and historical delays in capital projects make it clear that execution risks are significant. As ratepayers, we have witnessed too many plans that sound promising but fail at the implementation stage,' she said.
Schoeman added that eThekwini's fiscal management has faced repeated criticism, both from the Auditor-General and from civic watchdogs. She said that without strict transparency and controls, projected savings of R5 billion and promised investments of R8.5 billion could easily evaporate.
'With municipal elections approaching, we caution that residents have become wary of grand announcements that are simply part of political campaigns. We sincerely hope that this is not one of those hollow pre-election promises,' she warned.
According to Schoeman, EURBCO will keep a watchful eye on every procurement phase, budget allocation, and performance milestone associated with this energy programme.
'This is a moment where eThekwini can either set a genuine national precedent for municipal-led energy reform — or repeat the costly cycle of failed promises and wasted opportunities. The residents and businesses of our city deserve the former, and we will do everything possible to hold the city accountable to that standard.'
On the political front, Thinta Cibane, ANC eThekwini regional spokesperson, congratulated the municipality for being the first metro in the country to receive approval to generate its electricity from renewable energy sources.
'The ANC fully welcomes this initiative as it will lessen the burden on the national grid, allowing Eskom to deploy energy capacity elsewhere, also saving the municipality R5 billion over the duration of the Power Purchase Agreements (PPAs), or R250 million annually,' Cibane said.
He added that it is through these types of innovations that the country can transform into a world-class status. He called upon all ANC-led municipalities to take a lead out of the eThekwini book and implement futuristic projects that will help address socio-economic challenges.
zainul.dawood@inl.co.za
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 days ago
- IOL News
Westville Prison's new bakery: A dual benefit for inmates and taxpayers
Correctional Services Minister Dr Pieter Groenewald tastes a piece of bread baked by Westville Prison inmates at the new Durban Management Area Bakery at the prison. Image: Sibonelo Ngcobo / Independent Newspapers The opening of the Durban Management Area Bakery at Westville Prison in Durban was for the benefit of taxpayers and the rehabilitation of inmates. Correctional Services Minister Dr Pieter Groenewald said it was an honour to open the bakery because it will benefit South African taxpayers. 'This bakery can produce 3,840 loaves of bread daily. The rate is about 480 loaves of bread an hour,' Groenewald said. 'We have almost 50 inmates involved in the bakery, meaning they get a pre-training and then they also rotate in certain ways to ensure that they also are practically part of the process.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Inmates at Westville Prison engage in hands-on training at the newly opened bakery, learning valuable skills for their reintegration into society. Image: Sibonelo Ngcobo / Independent Newspapers Groenewald said this is part of rehabilitation, ensuring that when the inmates leave Correctional Services facilities, they are successfully reintegrated into society. 'When they finish here, they will receive a certificate to say that, and this is part of their skills they have learned in Correctional Services, so it's a dual benefit for the inmates on the one side and the taxpayers on the other side,' Groenewald said. 'We will save more or less R3 million annually with this bakery. The facility cost us about R7 million, but it is an investment, so we must also see this as an investment; after about two years, we will have the full benefit.' Groenewald said they produce a loaf of bread for R8. Currently, through external suppliers, they pay almost R23.50 per 700g loaf of bread. He said bread plays a crucial role in the inmates' nutrition programme. Inmates rotate through various roles in the bakery, gaining practical experience and a certificate upon completion of their training. Image: Sibonelo Ngcobo / Independent Newspapers 'This is the 13th bakery in Correctional Services, and we hope by 2028 that we will have 20 bakeries,' Groenewald said. When he became minister, he said they must enhance the self-sufficiency of Correctional Services to benefit taxpayers. 'If you add the agricultural activities and all other activities, the previous year, through the management of the National Commissioner, we saved the taxpayers almost half a billion rand. Add to that the other benefit of rehabilitation for reintegration.' Groenewald told the inmates to see themselves as privileged to work in the bakery. They learn a specific skill. If they go out of the Correctional Services facilities, they will get a certificate saying they have worked and have the specific skills in terms of bakery. They will get a job easily when they are out, and some of them can even start bakeries. Correctional Services Minister Dr Pieter Groenewald highlights the dual benefits of the new bakery: enhancing inmate skills and reducing costs for South African taxpayers. Image: Sibonelo Ngcobo / Independent Newspapers 'So that is another bonus because we have an obligation as Correctional Services to ensure that there is successful law-abiding reintegration in our society.' Groenewald said that before selection, the inmates had their records looked at. They see what category of inmate they are. Then, in terms of different skills, they get selected and do a pre-course on bakery. 'There are about 50 of them, and from that, after they completed the pre-course, they come in in a practical situation, and they rotate them to ensure that they also are practically part of the process,' Groenewald said. 'In the end, at least you have 50 of the inmates in this specific bakery. Countrywide, this is the 13th bakery, and we hope to increase it to 20 by 2028.' Mlindeni Xaba, an inmate at Westville Prison, expresses gratitude for the opportunity to learn baking skills that will aid his future after release. Image: Sibonelo Ngcobo / Independent Newspapers Medium C inmate Mlindeni Xaba, 30, speaking on behalf of the inmates he works with in the bakery, thanked Correctional Services officials for the opportunity they gave them, for how they are treated, and for helping them choose the right path. 'We're also thankful for the skills they've imparted to us, so that we can use them when we are released,' Xaba said. He was handed an eight-year sentence for robbery and has been behind bars for two years.
eNCA
4 days ago
- eNCA
Eskom confident it will keep the lights on
JOHANNESBURG - No surprise power cuts expected for the rest of winter. This according to Electricity Minister Kgosientsho Ramokgopa, who provided an update on the state of the grid. He says the energy availability factor is improving, averaging between 62% and 70%. The country has experienced no rolling blackouts since May 2025 proving Eskom's ability to meet the demand for power supply during the winter period. But to do this, the power utility found itself having to burn more diesel and that saw them spend R5-billion in the last four months.
IOL News
4 days ago
- IOL News
Ramakgopa urges Eskom to withdraw court challenge on electricity trading licences
Minister for Electricity and Energy, Kgosientso Ramakgopa and Eskom CEO Dan Marokane during the media briefing on the State of the National Grid on Wednesday. Image: GCIS Banele Ginidza Minister for Electricity and Energy, Kgosientso Ramakgopa, has urged Eskom to withdraw its ongoing court challenge against the Energy Regulator of South Africa (Nersa) regarding the awarding of electricity trading licences to private companies. This appeal comes as Ramokgopa emphasised the need for a regulatory environment that fosters competition rather than legal disputes. Ramakgopa's remarks highlight a growing divide amongst business stakeholders. While some, such as Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA), have been vocal critics of Eskom's decision to litigate, the South African Local Government Association (SALGA) has sided with the utility. In response to the pushback, Ramakgopa advised Eskom, "not to burden the judges to come into this domain," underscoring his belief that court intervention would complicate an already intricate sector. "Nersa then initiated the process of reviewing and coming up with the rules. The initial timeline was that they will do that within 12 months. I asked Nersa that the pressure is such that we need to conclude those rules as soon as possible," Ramokgopa said during a media briefing on Wednesday. "And Nersa has agreed that we'll truncate that to three months without compromising the quality of the impact and what the rules will look like. And in that context, I said to Eskom it's not advisable that you go to the courts. And with the highest respect we have with the judiciary, don't invite the judiciary into a space that is really technical, if you like." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ However, Ramokgopa acknowledged that introducing competition in this nascent market could be precarious. He explained that the market's current conditions might lead to a dilemma where private entities, driven primarily by profit motives, tend to serve only the higher ends of the market, thus neglecting poorer consumers and potentially decimating local municipalities as they lose their customer base. "Because this is a nascent space we are starting, none of us have been in this space before. There's naturally going to be friction, interpretation, misinterpretation of what this reform means," he said. "There's going to be conversations and, in some instances, disagreement on the pace of these reforms. The issue whether the regulator is capacitated enough to be able to manage and oversee these reforms. "Is this monopoly that is Eskom ready to relinquish that monopoly and accept that they are new players? And what the Eskom team had raised was that we are not opposed to the reforms, but what we want is clarity with regards to the rules." Ramakgopa said what the SA Local Government Association was saying was that what this dispensation does was that munnicipalities were going to lose their best customers who underpin and guarantee them the revenue stream, and they will be left with those that can't afford. "So that's the argument," he said, adding that whether Eskom and its board took that decision was outside of the entity's scope. "I've raised it with the chair. Don't enter the court process. Let's not muddy the space. We have agreed, next time doing that, the shareholder will also oversee the process," Ramokgopa said. "It's a particularly unhelpful approach to muddy the waters. Allow the space and for us as the players, there's friction. And in that period, the expectation is that let's clear the rules. And then once we have cleared the rules, then proceed with the issuing of the license. "I have raised that to the chair and its something that they will go back and ensure that we are able to address it. I have no answer now whether they have initiated it or not, the conversation took place yesterday." BUSINESS REPORT
