In a landmark move for South Africa’s energy sector, eThekwini Municipality in KwaZulu-Natal has become the first city in the country to secure government approval to generate its own electricity from renewable and low-carbon sources.
Electricity and Energy Minister Dr. Kgosientsho Ramokgopa confirmed the approval on 8 August, allowing the metro to develop 400 MW of new generation capacity—100 MW from solar photovoltaic (PV) projects and 300 MW from gas-to-power. The R8.5 billion (US$484 million) programme is expected to create around 2,200 jobs during construction and operation.
“This is a significant milestone for local government in South Africa,” said eThekwini spokesperson Sbu Ntshalintshali. “We are decentralising energy generation so that the city of Durban can generate and distribute its own power, mitigating higher stages of load shedding and protecting industrial competitiveness.”
Mayor Cyril Xaba described the plan as financially sound and aligned with the city’s Integrated Development Plan, adding that it focuses on “dispatchable, reliable, and low-carbon energy technologies.”
The approval follows a multi-year process involving provincial and national oversight, including a Section 34 Ministerial Determination under the Electricity Regulation Act, public consultations led by the National Energy Regulator of South Africa (NERSA), and verification of eThekwini’s financial standing by National Treasury.
While the initiative has been hailed as a potential game-changer, some remain cautious. Allison Schoeman, chairperson of the eThekwini United Ratepayers, Business and Civics Organisation (EURBCO), welcomed the vision but warned of execution risks.
“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,” she said. “Without strict transparency and controls, projected savings of R5 billion and promised investments of R8.5 billion could easily evaporate.”
On the political front, ANC eThekwini regional spokesperson Thinta Cibane praised the project, saying it would “lessen the burden on the national grid, allowing Eskom to deploy energy capacity elsewhere” and save the municipality R250 million annually.
The municipality will now issue a request for proposals to Independent Power Producers, aiming to boost local supply, reduce reliance on Eskom, and set a precedent for municipal-led energy reform nationwide.
