Latest news with #LandfillGastoElectricityCleanDevelopmentMechanism
IOL News
7 days ago
- Business
- IOL News
Ratepayer associations praise eThekwini's landfill gas initiative for economic benefits
eThekwini officials along with Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa tour the Landfill Gas to Electricity Clean Development Mechanism (CDM) project in Springfield, Durban. Image: Sibonelo Ngcobo 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. 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 '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. eThekwini electricity official Logan Moodley and Minister of Electricity and Energy Dr Kgosientsho Ramokgopa at the Landfill Gas to Electricity Clean Development Mechanism (CDM) project in Springfield, Durban. Image: Sibonelo Ngcobo 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.
IOL News
7 days ago
- Business
- IOL News
eThekwini Municipality's bold strategy to reduce national grid dependence by 40% by 2030
From left, eThekwini officials, councillor Mdu Nkosi, Mayor Cyril Xaba, Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa and City Manager Musa Mbhele are briefed by Logan Moodley of the eThekwini Electricity unit in the control room of the Landfill Gas to Electricity Clean Development Mechanism (CDM) project in Durban. Image: Sibonelo Ngcobo 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. 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 '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. Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa and City Manager Musa Mbhele are briefed by Logan Moodley of the eThekwini Electricity unit of the Landfill Gas to Electricity Clean Development Mechanism (CDM) project in Durban. Image: Sibonelo Ngcobo '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
