eThekwini municipality has become the first metro in the country to receive approval to generate its own electricity from renewable energy sources.
Electricity and energy minister Dr Kgosientsho Ramokgopa approved the city's new generation capacity request to meet its growing energy demands.
Ramokgopa said the approval marks progress in municipal energy autonomy and financial sustainability.
The programme will enable the municipality to procure 400 megawatts (MW) of new generation capacity through 100MW solar photovoltaic and 300MW gas-to-power (GTP). Natural gas is burnt to produce mechanical energy — usually in a gas turbine — which is then converted into electrical energy that can be distributed for use in homes, businesses and industries.
The municipality came under fire after eThekwini proposed tariff increases of 6.5% for rates, 12.7% for electricity, 15% for water, 13% for sanitation and 6.6% for refuse removal.
eThekwini municipality spokesperson Gugu Sisilana said: “The city’s current average power demand is 1,600MW, of which 400MW — representing 25% — will now come from local projects rather than the national power utility, Eskom. The city has now been granted permission to facilitate the acquisition of locally generated electricity.”
She said the city is beginning to take control of its own generation capacity and electricity needs from a local generation perspective, a major step towards energy independence.
“This move marks a shift away from national generation constraints, including load-shedding. The programme is designed to support renewable technologies and low-carbon systems, helping the city meet its low-carbon economy targets.
“Over the years, the cost of renewable energy has steadily declined, making it more affordable than traditional generation methods. These cost savings will enable cheaper electricity production, ultimately benefiting customers across the city,” she said.
She said this arrangement is expected to deliver savings for the city over the medium to long term.
eThekwini mayor Cyril Xaba hailed the announcement as a historic milestone in eThekwini’s energy road map.
“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. The programme is projected to save the municipality R5bn over the duration of the Power Purchase Agreements , translating into R250m in annual savings,” said Xaba.
The programme is also expected to unlock R8.5bn in private investment and create about 2,200 jobs during the construction and operation phases.
“This initiative is not just about energy, it’s about economic growth, industrial stimulation, and future-proofing our city,” said Xaba.
The procurement process will be rolled out in phases:
- Solar PV Request for Proposals (RFP) to be issued in December, with construction expected by September 2027.
- Gas-to-Power RFP to follow in 2026, with further details to be announced.
Xaba said this pioneering move places eThekwini at the forefront of municipal energy innovation, setting a precedent for other cities to follow.
eThekwini united ratepayers, business and civics organisation (Eurbco) chairperson Allison Schoeman said: “We recognise this as a potentially historic step towards greater energy security and diversification for our metro — one that, if implemented effectively, could reduce our over-reliance on the national grid, protect residents from higher stages of load-shedding, and create much-needed jobs and investment opportunities.”
Schoeman said they welcomed the vision of a decentralised, resilient and lower-carbon municipal energy system, but their optimism was tempered by the city's track record.
“In principle, this is the kind of forward-thinking action our city desperately needs, especially given the national energy challenges we all face.
“However, 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 the city's fiscal management has faced repeated criticism, both from the auditor-general and from civic watchdogs.
“Without strict transparency and controls, projected savings of R5bn and promised investments of R8.5bn 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.
“As the organised voice of ratepayers, business and civil society in this city, Eurbco will keep a watchful eye on every procurement phase, budget allocation and performance milestone associated with this energy programme. In the spirit of genuine public participation and transparency, we request that the city meet formally with Eurbco and other ratepayer associations as soon as possible,” she said.
Schoeman said they want the city to provide detailed project plans, timelines and funding models, clarify the risk management processes for both the solar PV and gas-to-power projects and demonstrate how the savings and investment benefits will be safeguarded and delivered.
“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,” she said
eThekwini ratepayers and residents association Ish Prahladh welcomed the move to source energy independently.
“Remember, it’s going to create more jobs and the city will be less reliant on Eskom whose tariff charges are ridiculously high and keep on increasing. Businesses, ratepayers and residents will definitely start benefiting if the charges are lowered and more profitability affords more expansion and more jobs. This is a way to go and when one company holds the monopoly it’s not good for the economy, " he said.
Westville Ratepayers Association's Asad Gaffar said Ramokgopa had made a good decision to allow the municipality to be the first metro to embark on this project.
“This is a great milestone for eThekwini and to attract investment to the city. eThekwini is in desperate need to secure stable electricity, but what is missing from this entire exercise is the discussion on the current infrastructure, many of the sub stations have not been serviced in decades and are prone to failure. Another issue is cable theft. The city still has to come up with a plan on how they will deal with this,” he said.
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