City cautiously optimistic about opening of energy markets after its decade-long fight to achieve this
19 October 2020
Last month, Energy Minister Gwede Mantashe confirmed National Government’s intention to buy 6 800 MW of solar and wind power through Eskom. On Friday, 16 October 2020, amendments to the electricity regulations were gazetted. Although much work is required, this long-awaited legislative amendment paves the way for municipalities to source power independently from Independent Power Producers (IPPs) for the benefit of their residents and the South African and local economies.
We are thus cautiously optimistic about the new regulations potentially fast tracking the development of new generation capacity at a local level in the future.
The City has been preparing for a future where more affordable and cleaner energy can be procured by municipalities. We have been an advocate of this much-needed change to the energy regime for more than a decade. Importantly, we have been a strong proponent of enabling more security of energy supply and being able to determine what is required in terms of its own energy requirements and development goals.
The gazetting of the regulations marks another step closer towards recognising the role municipalities can play in the diversification of energy supply.