Cheaper electricity if municipalities can generate own power, says expert

New government regulations that will allow municipalities such as Tshwane to generate their own electricity would provide much-needed relief to residents, an energy expert has said.

“Allowing municipalities that are in good financial standing to self-generate power will release the burden from Eskom and let such municipalities supply electricity to communities,” said energy expert Chris Yelland.

It would also reduce loadshedding and opens the door to cheaper electricity.

“The cost of electricity is increasing all the time. These regulations will slow down such increases and in the long run see lower electricity prices.’’

Yelland said the new regulations by the Department of Energy and Resources would help stabilise the supply of electricity.

Tshwane metro is among the municipalities that could possibly apply to generate its own electricity – if its finances are in good standing.

“Generating electricity is expensive, which is why the department would only let municipalities with good finances to generate their own power.

“Of course, there is nothing new about municipalities generating their own power. They did so in the past and therefore have the capacity to do so again. The Rooiwal power station in the west of Pretoria is just one example of a municipality-owned station. All the major metros can produce electricity.”

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Yelland, however, cautioned that municipalities should look into new ways of generating electricity.

“Putting all our eggs in one basket is dangerous. This we have learnt from having only one source of power. Municipalities must look into renewable energy and use new technology to generate power, because when it rains the coal we rely on gets wet and no power can be generated. Municipalities should be aware of this.”

Cheaper electricity prices also meant that fewer people would illegally connect to the grid.

Tshwane metro spokesperson Lindela Mashigo previously told Rekord that they have two existing generation licences.

“Should we get fair and competitive prices for electricity, we will enter into a long-term agreement with independent power producers,” he said.

Earlier this month, mineral resources and energy minister Gwede Mantashe said the new regulations follow a promise made by President Cyril Ramaphosa during his state of the nation address to enable municipalities to develop their own power generation projects.

“The amendments to the regulations clarify the regime applicable to municipalities when requesting determinations under Section 34 of the Electricity Amendment Act. This will ensure an orderly development in line with the applicable Integrated Resource Plan (IRP) and municipal Integrated Development Plans (IDPs).”

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