The City of Cape Town notes the reports that Energy Minister Gwede Mantashe has confirmed national government’s intention of buying 6 800 MW of solar and wind power through Eskom. The City remains keen to engage the Minister to get clarity on the procurement plans that would seek to bring greater energy security to South Africa as well as deliver on climate commitments especially on a local level as well.
This is a positive step that the National Government has taken to show South Africa’s commitment to garnering cleaner energy and to diversify the energy mix. We are optimistic about the opening of the energy market, given Presidents Ramaphosa’s statement of intent at the State of the Nation Address in which he called for municipalities to be given more opportunity to generate their own power.
The City awaits an engagement with national government for clarity on the roles and responsibilities of local governments in energy procurement. In August, the North Gauteng High Court electing not to rule on the merits of our application challenging the applicability and constitutionality of the requirement in Section 34 of the Electricity Regulation Act that a ministerial determination is necessary before power may be procured from independent power producers.
The Court ruled the City and the National Department should follow intergovernmental channels to clarify the roles and responsibilities.
The City maintains that local governments have the constitutional power and obligation to procure renewable energy and this is necessary to move away from the sole reliance on Eskom for energy supply and that cities, being the growth engines of the economy, should have a say in the energy mix, especially looking at cleaner, more sustainable and more affordable options.
We will keep standing up for residents and businesses whose livelihoods depend on a reliable energy supply and we hope to get the chance to engage and to get more clarity.
The City has been engaging National Treasury on the development of a national municipal renewable energy procurement programme.