Durban businesses raise concerns over eThekwini Municipality's new energy initiative

The election timelines, a poor track record of delivery, and maintenance of infrastructure, were a concern for businesses and civic organisations following the approval for eThekwini Municipality to procure new electricity generation capacity directly from Independent Power Producers (IPPs) on Friday.

Electricity and Energy Minister Dr Kgosientso Ramokgopa authorised the city to develop new electricity generation capacity through a Section 34 Ministerial Determination. eThekwini became the first metro in the country to receive this determination to procure new generation capacity to meet its growing energy demands.

Cyril Xaba, eThekwini Municipality mayor, said this programme will allow EM 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).

“We want to assure our ratepayers that this programme is financially sound,” he said.

Allison Schoeman, chairperson, eThekwini United Ratepayers, Business and Civics Organisation (EURBCO), and vice-chair of the Bluff Ratepayers and Residents Association (BRRA), had a critical view.

The EURBCO recognised this as a potentially historic step towards greater energy security and diversification for the municipality.

Schoeman said if implemented effectively, it could reduce over-reliance on the national grid, protect residents from higher stages of load shedding, and create much-needed jobs and investment opportunities.

“We welcome the vision of a decentralised, resilient, and lower-carbon municipal energy system. In principle, this is the kind of forward-thinking action our city desperately needs, especially given the national energy challenges we all face,” she said.

However, Schoeman said that this optimism is tempered by serious concerns. 

“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. As ratepayers, we have witnessed too many plans that sound promising but fail at the implementation stage,” she said.

Schoeman added that eThekwini’s fiscal management has faced repeated criticism, both from the Auditor-General and from civic watchdogs. She said that without strict transparency and controls, projected savings of R5 billion and promised investments of R8.5 billion could easily evaporate.

“With municipal elections approaching, we caution that residents have become wary of grand announcements that are simply part of political campaigns. We sincerely hope that this is not one of those hollow pre-election promises,” she warned.

According to Schoeman, EURBCO will keep a watchful eye on every procurement phase, budget allocation, and performance milestone associated with this energy programme.

“This is a moment where eThekwini can either set a genuine national precedent for municipal-led energy reform — or repeat the costly cycle of failed promises and wasted opportunities. The residents and businesses of our city deserve the former, and we will do everything possible to hold the city accountable to that standard.” 

On the political front, Thinta Cibane, ANC eThekwini regional spokesperson, congratulated the municipality for being the first metro in the country to receive approval to generate its electricity from renewable energy sources.

“The ANC fully welcomes this initiative as it will lessen the burden on the national grid, allowing Eskom to deploy energy capacity elsewhere, also saving the municipality R5 billion over the duration of the Power Purchase Agreements (PPAs), or R250 million annually,” Cibane said.

He added that it is through these types of innovations that the country can transform into a world-class status. He called upon all ANC-led municipalities to take a lead out of the eThekwini book and implement futuristic projects that will help address socio-economic challenges.

zainul.dawood@inl.co.za