A Ministerial Determination under Section 34 of the Electricity Regulation Act has paved the way for the Ekurhuleni Metropolitan Municipality to procure some 2400MW of new generation capacity from Independent Power Producers (IPPs).
This was announced by Electricity and Energy Minister, Dr Kgosientsho Ramokgopa, who, together with City of Ekurhuleni Mayor Nkosindiphile Xhakaza, led a media briefing in Pretoria on Monday.
The energy mix will include:
- 1237MW of Solar Photovoltaic (PV) with1137MW of embedded generation in Ekurhuleni;
- 780MW of natural gas with 535MW wheeled;
- 183MW of waste-to-energy; and
- 200MW to be directed towards innovative energy technologies.
Ramokgopa noted that Ekurhuleni follows a similar path to that of the City of eThekwini and the City of Cape Town.
“This is monumental in a number of ways. First, the City of Ekurhuleni is the first one to make an application for a Ministerial Determination. Of course, it took much longer for us to arrive at this stage because of the magnitude of what the City…had applied for and the composition of the energy mix.
“Second significance is…2400MW of new generation capacity. eThekwini was 400MW, the City of Cape Town was 220MW. This is at a different scale. What this does, potentially, is to free Ekurhuleni from total dependence [on] Eskom. Of course it will continue to be grid-tied,” he said.
The Minister noted that the move by the city is a demonstration of government’s commitment to advancing energy security.
“Especially in the context of geopolitics. It is important that we are able to build sufficient headroom to allow the economy to grow. Electricity generation must lead this growth we are anticipating.
“Secondly, it’s about our ambition to produce electricity that is affordable. As we pivot more and more to renewables, supported by reliable [and] dispatchable generation, we are likely to achieve this ambition of affordable electricity,” he said.
Ekurhuleni Mayor Nkosindiphile Xhakaza noted that the economic potential is significant.
“The City estimates that the IPP programme will attract approximately R6.2 billion in infrastructure investment. This programme is expected to create much-needed jobs for our people, and we are working towards sod turning in some projects before the end of this week.
“Our responsibility is to ensure that these projects translate into real economic opportunities and measurable benefits for our communities. And the benefits to residents and businesses,” he said.
The City estimates that the IPP could generate some R36 billion in savings over 20 years on bulk electricity.
“It means…communities who are paying R3 per unit now will save up to 31%. That could be about R2 per unit. It means households that consume about 500KW per month would cost R1500 at R3. With this saving, it means you pay up to R100 per month. That’s a R500 saving. Industry alike will also realise savings.
“The projected savings could [also] ease pressure on municipal finances and help protect residents and businesses from some of the effects of the rising electricity costs.
“We now look forward to translating this process into construction, electricity generation, employment and tangible benefits to our communities,” Xhakaza stated. – SAnews.gov.za
Source: Original report at SAnews.gov.za.
