Tackling rising cost of electricity a top priority, says Electricity Minister Ramokgopa
Although Eskom has made progress in reducing load shedding, the cost of electricity has continued to climb each year.
Ramokgopa previously disclosed that power prices had ballooned by 180% over the past decade.
Speaking at a media briefing in Johannesburg on Tuesday, the minister admitted that escalating tariffs were unfair to consumers.
"Electricity is very expensive, so poor households have to make choices between a loaf of bread or buying prepaid units. We are getting to a situation where industries that have got electricity as a dominant input cost are becoming increasingly uncompetitive."
ALSO READ: COJ wants to increase electricity surcharge to R270 a month
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Daily Maverick
39 minutes ago
- Daily Maverick
eThekwini's energy deal is not the green win it seems to be
The Durban metro's landmark 400MW power deal is not a renewable energy success. It's a carefully orchestrated national strategy to avert an industrial catastrophe that could wipe out 5% of GDP. Minister of Electricity and Energy Kgosientsho Ramokgopa needed only four succinct bullet points in the Government Gazette to herald a landmark 400MW energy deal: eThekwini will be South Africa's first metro to procure substantial power from independent producers and could potentially reduce its reliance on Eskom by 18%. But the devil is in the detail, which reveals that this isn't quite the green energy story many may have been expecting. Of the 400MW capacity, only 100MW will come from solar photovoltaic (PV) panels. The remaining 300MW will be generated by natural gas. This makes eThekwini's deal less a renewable energy triumph than a strategic manoeuvre to avert the other national energy crisis: the 'gas cliff'. South Africa faces the imminent collapse of its natural gas supply. This could devastate industries worth up to R700-billion annually and directly threaten more than 70,000 jobs. The country's industrial economy depends heavily on gas imports from Mozambique via the Rompco pipeline. But those Pande and Temane fields are rapidly depleting and Sasol, the primary importer, has notified customers that it will cease supplying the commercial market between 2026 and 2028. Ramokgopa has called the gas cliff the 'second most pressing issue' keeping him up at night after load shedding, with the potential 'to wipe out 5% of the country's GDP'. This helps to make sense of eThekwini's gas-heavy procurement. It didn't stumble into a gas deal; it is a deliberate move. The municipality's initial public statements spoke of '400MW of renewable energy', but the request for information (RFI) issued in July 2021 was, strategically, 'technology-agnostic'. When the RFI closed 90 days later, it had generated overwhelming support from 104 potential projects totalling 16,477MW. A breakdown of the technology was revealing. Of the 8,857MW of individual generation assets proposed, natural gas was the single-largest category at 40%, followed by solar PV at just 23%. The message was clear: private developers see gas as the 'most mature, large-scale and readily available' option for dispatchable power that can be switched on when needed. This market-driven evolution towards gas wasn't coincidental. It reflected the technical reality that intermittent renewable sources need backup. The timelines of the procurement and the national gas infrastructure response reveal a carefully coordinated strategy: 2021: eThekwini launches its procurement proces. 2023: Sasol officially announces cessation of gas supply between 2026 and 2028. February 2025: The Zululand Energy Terminal consortium signs a 25-year agreement to develop a liquefied natural gas (LNG) import facility at Richards Bay. August: eThekwini receives final approval for its 400MW deal. 2026: The projected gas cliff begins, eThekwini plans to issue its gas tender, and the LNG terminal aims for a final investment decision. 2028: Both the eThekwini gas plant and the LNG terminal target commercial operation. This isn't a coincidence. eThekwini will serve as a foundational anchor customer for the Zululand Energy Terminal, a joint venture between Dutch multinational Royal Vopak and Transnet Pipelines. The gas will flow through the repurposed Lilly pipeline, avoiding the need for expensive new infrastructure. This creates a symbiosis whereby the power plant depends on the LNG terminal's completion, while the terminal needs the long-term power purchase agreement to justify its investment. Tracking dirt into the energy transition The eThekwini deal sits uncomfortably with the energy transition narrative. Dr Karen Surridge, renewable energy project manager at the South African National Energy Development Institute, recently celebrated how electricity constraints had driven 'a boom in the solar PV and battery industries', with marked improvements in efficiency and cost reduction. But eThekwini's procurement tells a different story. Despite the rhetoric about innovation and renewable energy, when a municipality needed large-scale, reliable power quickly, the market delivered gas. This reflects a broader tension in South Africa's energy transition. Whereas policy documents speak of renewable energy and the just energy transition, practical decisions increasingly favour gas as a 'critical transitional fuel'. The draft Integrated Resource Plan 2023 allocates significant new generation capacity to gas-fired plants, up to 22,000MW of combined cycle gas turbines by 2050. Importantly, no companies have been awarded contracts yet. The formal bidding process through requests for proposals is still to come – solar PV tenders in December this year, and gas-to-power tenders in 2026. But the initial interest was overwhelming: 104 potential projects, including 96 energy-generation proposals and eight financial institutions. The delay until 2026 for gas tenders is strategic, aligning with when the Zululand Energy Terminal consortium needs customer commitments to reach its 'final investment decision'. It's also when the country will be teetering on that gas cliff. Environmental justice organisations aren't buying the transition fuel argument. They see new gas infrastructure as creating stranded assets in an accelerating global energy transition, and question whether gas can truly be considered clean. But industrial stakeholders view projects such as eThekwini's as vital lifelines. The municipality projects savings of R5-billion over the duration of the power purchase agreement, and R8.5-billion in private investment creating an estimated 2,200 jobs. The project faces significant risks: global LNG price volatility, construction delays that could leave industries exposed to the gas cliff, and the real possibility that environmental challenges could derail the creation of critical infrastructure. Viewing things at utility scale eThekwini's 400MW deal is more than a case of municipal power procurement. It's a test case for South Africa's ability to navigate the immense trade-offs inherent in its path towards a just and sustainable energy future. The deal reveals the gap between renewable energy rhetoric and practical implementation. Innovation advocates may celebrate solar and battery breakthroughs, but critical infrastructure decisions still favour gas for its reliability and scale. It also highlights the coordinated national response to the gas cliff – a crisis that could prove more immediately devastating than blackouts, even though it has received far less public attention. As South Africa grapples with its energy future, eThekwini's renewable energy deal offers a sobering lesson: in the complex world of energy security, good intentions often collide with harsh realities. The municipality set out to buy renewable energy and ended up as a linchpin in a national strategy to avert industrial catastrophe. Whether that's pragmatic policymaking or a failure of renewable energy ambition may depend on one's perspective. What's certain is that the eThekwini deal will be closely watched as other municipalities consider their own energy independence – and as South Africa races against time to prevent its industries from falling off the gas cliff. DM
The Citizen
7 hours ago
- The Citizen
WATCH: City Power hosts the 2025 schools EEDSM awards ceremony
City Power (CP) marked two milestones in its drive towards a sustainable energy future by celebrating the winners of the 2025 Schools' Energy Efficiency and Demand Side Management (EEDSM) competition and launching the Energy Performance Certificate (EPC) for the CoJ municipal buildings. The event, hosted on August 13 at CP's headquarters, was officiated by CP CEO Tshifularo Mashava. It brought together learners, teachers, municipal officials and energy officials from the CoJ to celebrate education-driven climate action. The competition is a national initiative implemented by CP in collaboration with the Department of Electricity and Energy (DEE), and funded through the EEDSM grant programme. It is designed to promote a just and sustainable energy transition by fostering awareness, innovation and environmental stewardship among high school learners. Mashava praised the young participants, emphasising that the event represented a commitment to provide the resources, mentorship and platforms needed for their innovations to thrive, alongside the CoJ supporting them every step of the way. @ The event, hosted on August 13 at CP's headquarters, was officiated by CP CEO Tshifularo Mashava. It brought together learners, teachers, municipal officials and energy officials from the CoJ to celebrate education-driven climate action. ♬ original sound – Southern Courier 'CP is about keeping the lights on for our people, and also for the progress of society. The progress of society is guaranteed with the brilliant minds in this room. We've seen that the future is in the hands of our youth. The submissions we received exceeded our expectations. Our responsibility is to nurture and support young minds, ensuring that the inspiration they showed here doesn't end today,' said Mashava. 'We also congratulate and celebrate young girls entering the energy space. All it takes is the mindset to say, 'I can be wherever I want to be', especially as we observe Women's Month. Today is not just about the event or the competition; it's about our ongoing commitment to supporting these young minds. We will be calling on businesses to support future initiatives like this one. These learners are not just future leaders; they are already innovators shaping how our city uses and saves energy. Their work proves that climate action starts in our classrooms and can inspire change in our communities,' added Mashava. This year's competition engaged 19 schools across Johannesburg. The learners competed in three practical and creative categories, including poster design to showcase renewable energy and energy-saving ideas, short videos promoting efficiency at home and school, and prototype models demonstrating innovative, often recycled, energy-saving solutions. Sgodiphola Secondary School clinched first place, winning R35 000 for their cost-effective solar water heating model. Seanamarena High School's household energy conservation video came second, winning R25 000. Jabulani Technical High School's automated classroom lighting system was third, winning R15 000. The competition will be expanded to integrate with key platforms, such as the 2025 Energy Indaba youth internship programmes. It will ensure that winning ideas are widely shared and young innovators are supported in their careers. While accepting his award, Lesedi Mokone from Jabulani Technical High School said he was honoured to be part of the competition, as he has always been curious about fixing things around the house and pursuing innovation. @ While accepting his award, Lesedi Mokone from Jabulani Technical High School said he was honoured to be part of the competition, as he has always been curious about fixing things around the house and pursuing innovation. 'Thank you to CP for this opportunity. It is my dream to become an electrical engineer, a passion I've had from a young age. I was always curious and wanted to fix things around the house. During load-shedding, I would think that if I were an electrical engineer, and companies listened to us as people, we could find solutions to these problems,' said Mokone. ♬ original sound – Southern Courier 'Thank you to CP for this opportunity. It is my dream to become an electrical engineer, a passion I've had from a young age. I was always curious and wanted to fix things around the house. During load-shedding, I would think that if I were an electrical engineer, and companies listened to us as people, we could find solutions to these problems,' said Mokone. EPCs for the municipal buildings During the ceremony, CP unveiled its newly issued EPC and 28 additional EPCs for municipal buildings, now certified under the national Regulations for the Mandatory Display and Submission of the EPC for Buildings. @ EPCs for the municipal buildings During the ceremony, CP unveiled its newly issued EPC and 28 additional EPCs for municipal buildings, now certified under the national Regulations for the Mandatory Display and Submission of the EPC for Buildings. ♬ original sound – Southern Courier 'The Environment and Infrastructure Services Department (EISD), in partnership with CP, has led efforts to ensure the CoJ complies with the Regulations for the Mandatory Display and Submission of Energy Performance Certificates for buildings. These national regulations require qualifying non-residential buildings to display an EPC, which rates a building's energy efficiency based on 12 months of consumption. EPCs serve as a tool for transparency, accountability and long-term energy savings,' said Olga Chauke, the EISD head of energy at the CoJ. 'Achieving EPC compliance is about more than meeting regulations. It is a statement that Joburg is serious about transparency, energy efficiency and climate resilience. Our leadership in this space sets the tone for other municipalities and the private sector,' added Chauke.
The Citizen
13 hours ago
- The Citizen
Electricity demand ‘met 97% of the time' this winter, Eskom says
Eskom said the system continues to operate reliably, enabling it to meet winter electricity demand effectively. Eskom says it has met electricity 97% of the time this bitter winter, with the power grid stable as the country moves into a warmer climate. The power utility's spokesperson Daphne Mokwena said the system continues to operate reliably, enabling Eskom to meet winter electricity demand effectively. Demand Mokwena said when system constraints do arise, they are managed through the 'targeted use of emergency reserves during morning and evening peak periods.' 'Electricity demand has been met over 97% of the time during the winter season and the financial year to date. Since 15 May 2025, South Africa has experienced no load shedding, with only 26 hours recorded between 1 April and 14 August 2025. 'With just over two weeks remaining in Eskom's Winter Outlook period, the power system remains well-positioned to maintain stability and reliably meet demand,' Mokwena said. Load shedding Mokwena added that the winter outlook, published on 5 May 2025, covering the period ending 31 August 2025, remains valid. 'It indicates that load shedding will not be necessary if unplanned outages stay below 13 000MW. If outages rise to 15 000MW, load shedding would be limited to a maximum of 21 days out of 153 days and restricted to stage 2.' 'Good space' Last week, Electricity Minister Kgosientsho Ramokgopa said Eskom was in a good space and South Africans shouldn't worry about the utility burning through billions of rands in diesel to keep the lights on because it was all part of the plan. Briefing the media on the state of the electricity grid on Wednesday, Ramokgopa said it was no secret that Eskom experienced 'significant challenges'. 'At the beginning of the financial year, in April, we relied more and more on the diesel to be able to support us, and this diesel was able to support us because it's meant to support us during those periods of difficulty.' ALSO READ: Eskom burns nearly R6 billion on diesel to keep lights on during winter ICU to general ward Ramokgopa said the return to service of Kusile Unit 6 and Medupi Unit 4 were among the reasons there has been no load shedding this winter. He also said improvements at other power stations have eased the burden on Eskom. 'One of those exceptional performers, from an improvement point of view, is Tutuka. So we've gotten back units 1, 2, 3, 4, and 5, that's exceptional. So now we take that station from an ICU. It's in a general ward, now it will work on its own, and then it starts running. When it starts running, the light will just be on and on and on.' Ramokgopa said that as South Africa marks nearly 90 days without load shedding, they want to make electricity affordable. ALSO READ: Eskom adds more power to electricity grid as G20 summit approaches
