Potch Prof on municipalities returning to their own electricity
NWU expert says municipalities benefit from own power generation, but warns of costs for Eskom and smaller towns.
South Africa’s municipalities are increasingly exploring ways to generate their own electricity, a trend that could reshape the country’s energy landscape.
The eThekwini Metro recently announced an ambitious plan to reduce its dependence on Eskom by 40% by 2030. With Eskom battling ageing infrastructure, crippling debt and ongoing load-shedding, local governments are looking for more reliable and cost-stable solutions.
According to Prof Jan de Kock of North-West University’s (NWU) Faculty of Engineering, this is not a new concept.
“Municipalities generating their own power is nothing new. Even in Potchefstroom, many years ago, we had our own power station at the site of what is now Snowflake. The pendulum has swung, and now it is swinging back again,” he said.
The benefits for municipalities and residents are clear. “By generating their own power, municipalities can lock in electricity costs. Tariffs should then only rise roughly in line with inflation. By contrast, Eskom’s tariffs have consistently climbed far above inflation in recent years. That stability is a direct benefit for local consumers,” Prof de Kock explained.
But while cities like Durban and Johannesburg may stand to benefit, smaller towns could pay the price. “The downside is that Eskom loses a major client. The cost of generation is then divided among the remaining customers. Electricity prices for those who cannot generate their own will inevitably rise,” Prof de Kock warned.
This raises concerns about fairness in the system. Wealthier municipalities could stabilise costs and protect residents, while poorer municipalities which are unable to build their own plants will face higher tariffs as Eskom tries to recover lost revenue.
Prof de Kock cautions that Eskom’s troubles won’t disappear simply because municipalities move towards self-generation. “Decentralisation could make Eskom’s financial situation worse. But municipalities will not sit idle while their lights flicker. The pendulum may have swung back, but whether it stabilises or simply swings again remains to be seen,” he said.
