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Ekurhuleni to Procure 2400 MW from Independent Power Producers

Ekurhuleni:Pretoria Ekurhuleni Metropolitan Municipality has received approval to procure 2400 MW of new generation capacity from Independent Power Producers (IPPs) following a Ministerial Determination under Section 34 of the Electricity Regulation Act.

According to South African Government News Agency, the announcement was made by Electricity and Energy Minister Dr. Kgosientsho Ramokgopa at a media briefing in Pretoria, alongside City of Ekurhuleni Mayor Nkosindiphile Xhakaza. The energy mix for this initiative will include 1237 MW of Solar Photovoltaic (PV) with 1137 MW of embedded generation in Ekurhuleni, 780 MW of natural gas with 535 MW wheeled, 183 MW of waste-to-energy, and 200 MW directed toward innovative energy technologies.

Minister Ramokgopa highlighted that this development is significant as Ekurhuleni is the first city to apply for such a Ministerial Determination, marking a major scale-up in power procurement compared to eThekwini and Cape Town. He noted that this move could potentially reduce Ekurhuleni's dependence on Eskom while remaining grid-tied.

The Minister also emphasized the government's commitment to energy security, noting the importance of affordable electricity through renewable resources and reliable generation. He expressed the goal of achieving economic growth supported by sufficient electricity generation.

Mayor Xhakaza stated that the IPP program is expected to attract approximately R6.2 billion in infrastructure investment and create jobs. He emphasized the responsibility to ensure the projects lead to economic opportunities and benefits for local communities and businesses. The program could generate R36 billion in savings over 20 years on bulk electricity, significantly reducing costs for residents and industries. Xhakaza anticipates the commencement of some projects before the end of the week, translating the initiative into tangible community benefits.