ETHEKWINI’S move to be less reliant on Eskom by generating its own power has been hailed as a pioneering step by the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, who gave the green light for the project that will see KwaZulu-Natal’s only metro turn gas into 400 megawatts (MW) of electricity in a few years.

At a press briefing on Friday at Durban City Hall, Ramokgopa confirmed the approval of eThekwini’s application to become the first city and municipality to generate its own electricity.

According to eThekwini mayor Cyril Xaba the city made an application for Section 34 in 2021. “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).

A Section 34 Ministerial Determination is a crucial mechanism that empowers municipalities to procure new generation capacity to meet specific energy needs and enhance energy security.

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“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,” said Xaba.

He said that through the Municipal Independent Power Producer Procurement Programme (MPPPP), eThekwini by July 2021, had issued a technology-agnostic Request for Information (RFI) to the market, targeting 400 megawatts (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 400MW business case received full endorsement from the KZN provincial government. Subsequently, the National Treasury approved the project, positioning eThekwini as a national pioneer in municipal-led power procurement,” said Xaba.

Once up and running, the programme will allow eThekwini Municipality to procure 400 MW of new generation capacity, 100MW Solar PV and 300MW Gas to Power (GTP). The power-generating plant will be located at 1 Dhulam Road in Springfield and is expected to create around 2200 jobs during construction.

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“Preliminary modelling indicates that it will save the municipality approximately R5b over the duration of the Power Purchase Agreements (PPAs), translating to around R250m in annual savings. The new capacity will reduce eThekwini’s reliance on the national grid by 18%, significantly cushioning us from up to Stage 3 load shedding,” said Xaba.

Giving his ringing endorsement for the move, Ramokgopa encouraged other municipalities to follow suit as this will ease the burden on the strained grid. “There’s nothing in law that prevents municipalities for applying for Section 34 under the Electricity Regulation Act.

“I want to congratulate eThekwini for taking advantage of this opportunity. This is the first move of its kind, by a municipality, in the country. We applaud eThekwini for this, and it will not affect revenue with Eskom.”

The RFP for Solar PV will be issued in December, with the construction expected by September 2027. The Gas-to-Power RFP will follow in 2026, 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,” said Xaba.

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