Date: 2025-08-08 12:25:29
Remarks by eThekwini municipality Mayor, Cllr Cyril Xaba at the joint media briefing with the Minister of Electricity and Energy on the occasion of the section 34 ministerial determination announcement, 8 August 2025
REMARKS BY ETHEKWINI MUNICIPALITY MAYOR, CLLR CYRIL XABA AT THE JOINT MEDIA BRIEFING WITH THE MINISTER OF ELECTRICITY AND ENERGY
ON THE OCCASION OF THE SECTION 34 MINISTERIAL DETERMINATION ANNOUNCEMENT, 8 AUGUST 2025.
• Programme Director: Ms Tsakane Khambane
• Minister of Electricity and Energy: Dr Kgosientsho Ramokgopa
• Chairperson for Economic Development and Planning: Cllr Thembo Ntuli
• Chairperson of Trading Services: Cllr Mduduzi Nkosi
• City Manager: Mr Musa Mbhele and your Executive Management
• Minister’s Special Advisor: Mr Silas Zimu
• Officials from the Department of Electricity and Energy in our midst
• Members of the media
Good day
As a city, we welcome this historic announcement by the Minister. It marks a critical milestone in our energy strategic roadmap which seeks to enhance energy security by diversifying energy sources and reducing reliance on the national grid.
So, today we are not only celebrating the decision by the Minister of Electricity and Energy to authorize the city to development new electricity generation capacity, but we are also affirming our commitment to lead South Africa’s energy transition in a way that is secure, inclusive, and sustainable.
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 (IPPs). This is a precedent-setting moment that reinforces the constitutional role of municipalities in ensuring they deliver quality services.
ENERGY ROADMAP
Allow me to outline briefly the journey we have traversed up until we reached this point. In line with our energy strategic road map, eThekwini Municipality took a decisive step in 2021 to respond to the national energy crisis. As a result, the Council resolved to initiate its own electricity procurement programme through the Municipal Independent Power Producer Procurement Programme (MPPPP). This decision was driven not only by necessity, but by a forward-looking vision of building a decentralised, diversified, and resilient municipal energy system.
By July 2021, we issued a technology-agnostic Request for Information (RFI) to the market, targeting 400 megawatt (MW) of renewable energy. This move allowed us to engage industry stakeholders, assess investment appetite, and lay the groundwork for meaningful public-private partnerships.
A year later, our 400 MW business case received full endorsement from the KwaZulu-Natal Provincial government. Subsequently, the National Treasury approved the project, positioning eThekwini as 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.
In the same year, we formally submitted our Section 34 Determination application which received the full attention of the Minister, a gesture we really appreciate.
By October last year, the Minister issued the draft Section 34 determination to NERSA, which launched public participation 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 (RFP).
GENERATION CAPACITY
This programme will allow eThekwini Municipality to procure 400 MW of new generation capacity (100 MW Solar PV and 300 MW Gas to Power (GTP), with a focus on dispatchable, reliable, and low-carbon energy technologies. Our energy mix is clearly articulated in our Integrated Development Plan (IDP).
Let me emphasise this point: our energy strategy is embedded in our IDP, which is a legislated planning and performance management instrument. The inclusion of our energy mix in the IDP ensures that our power procurement is directly tied to broader development outcomes, job creation, economic growth, climate change and spatial transformation.
ECONOMIC SPIN OFFS FOR THE CITY
We want to assure our ratepayers that this programme is financially sound. Preliminary modelling indicates that it will save the Municipality approximately R5 billion over the duration of the Power Purchase Agreements (PPAs), translating to around R250 million in annual savings. These are savings we can redirect to the upgrading of infrastructure for basic services that will directly benefit our residents.
Furthermore, this programme is catalytic as it is projected to unlock R8.5 billion in private investment and boost regional industrial activity. Most importantly, it will create an estimated 2,200 jobs during construction and operation phases. This initiative will also empower small businesses and promote inclusive enterprise and supplier development. Therefore, this is not abstract policy document, it is a tangible plan that will bring meaningful change to our communities.
ENERGY SECURITY AND ENVIRONMENTAL SUSTAINABILITY
From an energy security standpoint, once fully operational, the new capacity will reduce eThekwini’s reliance on the national grid by 18%, significantly cushioning us from up to Stage 3 load shedding. During this period our economy can stay productive, our hospitals, schools and police stations will continue operating without any disruption.
The project supports both our Climate Action Plan and South Africa’s Nationally Determined Contributions (NDCs) under the Paris Agreement. It is expected to avoid 250,000 tonnes of CO₂-equivalent emissions annually, a significant step towards achieving a just transition and low-carbon emissions.
PROCUREMENT MILESTONES
Ladies and Gentlemen, the procurement will be rolled out in phases. The RFP for Solar PV will be issued in December this year, with the construction expected by September 2027. The Gas-to-Power RFP will follow in 2026 and the details of which will be communicated in due course. This staggered approach allows us to align with demand profiles, strengthen local capacity, and manage implementation risks responsibly.
CONCLUSION
Let me reiterate that this is not an isolated programme. It is an integral part of our long-term development agenda, guided by our IDP, our energy policies, and our smart city ambitions. It is indeed a cornerstone of the city of the future we currently building together.
We wish to extend our deep appreciation to our partners across all spheres of government. It is through your guidance and collaboration that we have reached this milestone.
Therefore, today’s announcement is more than just a policy update, it is a declaration of intent. It says that eThekwini is ready to lead and accelerate energy development with local action. This also demonstrates that we are ready to reimagine a power system that serves our people, protects our planet, and builds prosperity.
We welcome the Minister’s announcement today and further commit to the residents of eThekwini that we will continue to build an energy secured city to stimulate economic growth and create employment not only for us, but for future generations.
I thank you
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