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Durban businesses raise concerns over eThekwini Municipality's new energy initiative
Durban businesses raise concerns over eThekwini Municipality's new energy initiative

IOL News

time5 days ago

  • Business
  • IOL News

Durban businesses raise concerns over eThekwini Municipality's new energy initiative

eThekwini officials with Dr Kgosientsho Ramokgopa, Electricity and Energy minister (centre), during a tour of the landfill gas-to-electricity project in Durban on Friday. 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.

eThekwini Municipality's bold strategy to reduce national grid dependence by 40% by 2030
eThekwini Municipality's bold strategy to reduce national grid dependence by 40% by 2030

IOL News

time09-08-2025

  • 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

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