The eThekwini municipality aims to unlock ZAR8.5 billion in investor funding following national government’s official stamp of approval for its plan to generate its own electricity from renewable sources.

Moneyweb has reported that Electricity Minister Kgosientsho Ramokgopa made a Section 34 ministerial determination enabling the municipality, which includes Durban and Umhlanga, to procure a total of 400 MW from new power stations employing low-carbon technologies, through power purchase agreements (PPAs).

The plan foresees 100 MW derived from solar PV and the remainder from gas-to-power.

‘This is a game-changer for our city,’ according to eThekwini mayor Cyril Xaba. ‘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 R5 billion over the duration of the PPAs, translating to R250 million in annual savings,’ he says.

The initiative is expected to create about 2 500 jobs during construction and operation. In addition, it is expected to reduce the municipality’s reliance on state-owned utility Eskom, by up to 18%.

eThekwini is not the first metro to procure renewable energy; Cape Town is building a 10 MW utility scale solar PV plant in Atlantis, which is expected to come on stream in 2026.

19 August 2025
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