R8.5 billion investment and 2,000 jobs set to power eThekwini’s energy independence
eThekwini has become the first metro in South Africa to receive the green light to generate its own electricity from renewable and low-carbon sources.
Image: Supplied
eThekwini has become the first metro in South Africa to receive the green light to generate its own electricity from renewable and low-carbon sources.
The city has secured approval from the national government to produce 400 megawatts of power, including 100MW from solar energy and 300MW from gas, in a move aimed at cutting reliance on Eskom and boosting energy security.
In a statement released to the media on Sunday, the city said the project will unlock R8.5 billion in private investment, create over 2,000 jobs, and save the municipality an estimated R5 billion over the duration of the power agreements.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa and eThekwini Mayor Councillor Cyril Xaba announce a historic milestone as eThekwini becomes the first metro in South Africa approved to generate its own electricity from renewable sources, unlocking 400MW in new capacity, R8.5 billion in private investment, and over 2,000 jobs.
Image: Supplied
“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," eThekwini Mayor Cyril Xaba said.
"The programme is projected to save the Municipality R5 billion over the duration of the Power Purchase Agreements (PPAs), translating to R250 million in annual savings,” eThekwini Mayor Cyril Xaba said.
Xaba added that “this initiative is not just about energy, it’s about economic growth, industrial stimulation, and future-proofing our city,”
According to the municipality, the procurement process is expected to be rolled out in phases. The Solar PV Request for Proposals (RFP) will be issued in December 2025, with construction anticipated to begin by September 2027.
"Gas-to-Power RFP to follow in 2026, with further details to be announced in due course"
Minister of Electricity and Energy, Kgosientsho Ramokgopa, praised eThekwini’s move, saying it makes the city the first municipality to use the Electricity Regulation Act to build its own generating capacity.
He also warned other municipalities to follow suit or risk losing key consumers to private power producers, which could hurt their revenue and service delivery.
"If municipalities don't move with the pace that eThekwini has moved, they are going to find that in the next five years, their best consumers will be taken off and they will be provided for by the private sector," Ramokgopa said.
"They are going to sit with those who can't afford, and that is the recipe for collapsing municipalities from a revenue point of view, and they will not be able to deliver their services. So the sooner they embrace this dispensation, the better"
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