Latest news with #Section34MinisterialDetermination
IOL News
16 hours ago
- Business
- IOL News
PICS: eThekwini makes history as first SA metro approved to generate its own electricity
Electricity and Energy Minister Dr Kgosientsho Ramokgopa and eThekwini Mayor Councillor Cyril Xaba announce a historic milestone as eThekwini becomes the first metro in South Africa approved to generate its own electricity from renewable sources, unlocking 400MW in new capacity, R8.5 billion in private investment, and over 2,000 jobs. Image: Picture: Supplied In a groundbreaking development for South African municipalities, eThekwini Municipality has made history by becoming the first metro in the country to receive approval for generating its own electricity from renewable energy sources. This significant milestone follows the announcement by the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, regarding a Section 34 Ministerial Determination that empowers the municipality to procure new generation capacity to address its increasing energy demands. Dr Ramokgopa, speaking at a joint media briefing, praised eThekwini's determination and strategic vision, noting that this approval represents a pivotal advancement in municipal energy autonomy and long-term financial viability. 'This initiative is about more than just energy; it's about economic growth, industrial stimulation, and future-proofing our city,' stated Ramokgopa. The approved programme allows eThekwini to procure an impressive 400 megawatts (MW) of new generation capacity, composed of 100 MW of solar photovoltaic (PV) energy and 300 MW of gas-to-power (GTP). Image: Picture: Supplied The approved programme allows eThekwini to procure an impressive 400 megawatts (MW) of new generation capacity, composed of 100 MW of solar photovoltaic (PV) energy and 300 MW of gas-to-power (GTP). This focus on reliable and low-carbon energy technologies is designed to enhance the city's resilience against power shortages and bolster its overall energy security. Mayor Councillor Cyril Xaba heralded this announcement as a historic milestone within eThekwini's energy strategy. 'This is a game-changer for our city. It enhances energy security, reduces dependence on the national grid, and positions eThekwini as a leader in sustainable urban development,' said Xaba. He also highlighted that the programme is projected to save the Municipality R5 billion over the duration of the Power Purchase Agreements (PPAs), translating to approximately R250 million in annual savings. Furthermore, the implementation of this programme is expected to unlock R8.5 billion in private investment and create about 2,200 jobs during both the construction and operational phases. Upon completion, it is anticipated that eThekwini's reliance on the national electricity grid will decrease by 18% – a remarkable feat for any municipality in South Africa. Councillor Cyril Xaba said this project enhances energy security, reduces dependence on the national grid, and positions eThekwini as a leader in sustainable urban development Image: Picture: Supplied
IOL News
3 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
3 days ago
- Business
- IOL News
eThekwini Municipality leads South Africa's energy transition with new electricity generation capacity
The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and eThekwini Mayor Cyril Xaba at the eThekwini Landfill Gas-to-Electricity project site in Durban. From left, eThekwini City Manager Musa Mbhele and far right, eThekwini Councillor Thembo Ntuli. Image: Zainul Dawood New electricity generation was on top of the cards for eThekwini Municipality on Friday. The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, joined by the Mayor of eThekwini, Councillor Cyril Xaba, spoke about the outcome of the municipality's Section 34 application. Xaba said that a Section 34 Ministerial Determination is a crucial mechanism that empowers municipalities to procure new generation capacity to meet specific energy needs and enhance energy security. City officials and Ramokgopa also inspected the waste-to-energy plant in Springfield, Durban, that is owned by the municipality, highlighting the municipality's commitment to innovative and sustainable energy. Xaba regarded it as a historic announcement that marked a critical milestone in the eThekwini energy strategic roadmap, which seeks to enhance energy security by diversifying energy sources and reducing reliance on the national grid. 'We are not only celebrating the decision by the Minister of Electricity and Energy to authorise the city to develop new electricity generation capacity, but we are also affirming our commitment to lead South Africa's energy transition in a way that is secure, inclusive, and sustainable,' Xaba said He added that eThekwini was the first metro in the country to receive this determination to procure new electricity generation capacity directly from Independent Power Producers (IPPs). According to Xaba, this is a precedent-setting moment that reinforces the constitutional role of municipalities in ensuring they deliver quality services. Detailing the history behind it, Xaba said that in 2021, eThekwini responded to the national energy crisis and initiated its electricity procurement programme through the Municipal Independent Power Producer Procurement Programme (MPPPP). He said this decision was driven not only by necessity, but by a forward-looking vision of building a decentralised, diversified, and resilient municipal energy system. By July 2021, eThekwini issued a technology-agnostic Request for Information (RFI) to the market, targeting 400 megawatt (MW) of renewable energy. This move allowed eThekwini to engage industry stakeholders, assess investment appetite, and lay the groundwork for meaningful public-private partnerships. A year later, the municipality's 400 MW business case received full endorsement from the KwaZulu-Natal provincial government. Subsequently, the National Treasury approved the project, positioning eThekwini as a national pioneer in municipal-led power procurement. In 2023, the municipality convened the first Energy Transformation Summit and submitted a Section 34 Determination application, which received the full attention of Ramokgopa. By October 2024, Ramokgopa issued the draft Section 34 determination to NERSA, which launched public participation in March 2025. On Friday, the final approval of the Ministerial Determination gave the green light to move to the next phase of the Request for Proposals (RFP). The RFP for Solar PV will be issued in December 2025, with the construction expected by September 2027. Xaba said that the Gas-to-Power RFP will follow in 2026. He explained that 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. Our energy mix is clearly articulated in our Integrated Development Plan (IDP). [email protected] The Landfill Gas-to-Electricity project site in Springfield, Durban. Image: Zainul Dawood
