eThekwini becomes first Metro approved to generate its own electricity

Key topics:eThekwini approved to procure 400MW via solar (100MW) & gas (300MW)Move aims to cut load-shedding and reduce reliance on EskomSolar construction starts Sept 2025; gas procurement to follow in 2026.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up for the BizNews channel here..By Myles Illidge.Electricity and energy minister Kgosientsho Ramokgopa has given the eThekwini Metropolitan Municipality the go-ahead to procure 400MW of power through solar and gas generation.The minister published a notice in the Government Gazette announcing the approval. It enables eThekwini to procure 100MW from solar generation and 300MW from natural gas plants.“The new generation capacity is needed to ensure continued uninterrupted supply of electricity,” the notice reads.“The generation capacity shall be procured by the Ethekwini Metropolitan Municipality through a tendering process which is fair, equitable, transparent, competitive, and cost-effective.”According to EE Business Intelligence, eThekwini is the first South African metro to be given permission to procure its own generation capacity.Former mayor Mxolisi Kaunda hailed the move “a new era of municipal-led generation.” The move aims to reduce the metro’s dependence on Eskom, cut load-shedding, and enable long-term energy security.However, the notice doesn’t guarantee that financial close can or will be reached, or that construction will advance.EE Business Intelligence said the 300MW gas component is a concern, considering there is no secured supply of new gas for power generation in the metro.Nor is there any liquified natural gas import, storage and regassification plant, or transmission pipelines to deliver the fuel in Durban.Industry experts have cautioned that the project could stall without a guaranteed and competitively priced gas source before breaking ground.Mayor Cyril Xaba welcomed Ramokgopa’s announcement, describing it as a critical milestone in eThekwini’s roadmap to enhance energy security and reduce its reliance on Eskom..Read more:.Eskom forecasts no load-shedding after operational turnaround.“We are excited that we are the first metro in the country to receive this determination from the minister to procure new electricity generation capacity directly from Independent Power Producers,” he said.“This is a precedent-setting moment that reinforces the constitutional role of municipalities in ensuring they deliver quality services.”Four years in the making.The eThekwini Metropolitan Municipality launched the project in July 2021, when it issued a technology-agnostic request for information to the market, targeting 400MW of renewable energy.“This move allowed us to engage industry stakeholders, assess investment appetite, and lay the groundwork for meaningful public-private partnerships,” said Xaba.“A year later, our 400MW business case received full endorsement from the KwaZulu-Natal Provincial government.”He added that the National Treasury subsequently approved the project, allowing eThekwini to be a national pioneer in municipal-led power procurement.“In 2023, the municipality convened the first Energy Transformation Summit with key public and private stakeholders, reaffirming our commitment to a reliable, low-carbon, inclusive energy future,” he said.Later that same year, the metro formally submitted its Section 34 Determination application, which it notes received Ramokgopa’s full attention.By October 2024, the minister submitted the draft Section 34 determination to the National Energy Regulator of South Africa, which launched a public participation process in March 2025.“We are happy that today, we celebrate the final approval of the Ministerial Determination, which gives us the green light to move to the next phase of the request for proposals (RFPs),” said Xaba.Regarding a timeline, the mayor said the procurement will be rolled out in phases, starting with issuing a request for proposal to procure electricity from solar generation in December 2025.The municipality anticipates that construction of the 100MW of solar generation capacity will commence by September 2025.The eThekwini Metropolitan Municipality will issue an RFP to procure electricity from gas-to-power plants in 2026.“This staggered approach allows us to align with demand profiles, strengthen local capacity, and manage implementation risks responsibly,” said Xaba..This article was first published by MyBroadband and is republished with permission

eThekwini becomes first Metro approved to generate its own electricity

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