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The city of Cape Town says it is interested in engaging energy minister Gwede Mantashe to gain clarity on the country’s new procurement plans.
This comes after ministerial determinations published by the government that will allow the development of more than 11,800 megawatts (MW) of additional power generation on Friday (September 25).
“This is a positive step the national government has taken to show South Africa’s commitment to cleaner energy and diversifying the energy mix.
“We are optimistic about the opening of the energy market, given President Ramaphosa’s declaration of intent in the State of the Nation Address in which he asked that municipalities have more opportunities to generate their own energy,” the city said.
The city said it expects a commitment with the national government to clarify the roles and responsibilities of local governments in purchasing energy.
“The city maintains that local governments have the constitutional power and the obligation to acquire renewable energy and this is necessary to move away from the exclusive dependence on Eskom for the supply of energy and that cities, being the engines of growth of the economy, they must have a say in the energy mix, especially looking for cleaner, more sustainable and affordable options.
“We will continue to advocate for residents and businesses whose livelihoods depend on a reliable power supply and we look forward to the opportunity to participate and gain more clarity.
“The city has been involving the National Treasury in the development of a national municipal renewable energy procurement program,” he said.
Court case
The city has previously approached the country’s courts to assure South African municipalities that the legal right to select their electricity providers has been delayed by a court ruling that must first exhaust negotiations with the government on the matter.
Currently, the city has to buy all its electricity from the national utility Eskom, which generates most of its production from coal and is struggling to keep up with demand.
In August, the North Gauteng Superior Court decided 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 it can be obtained. energy from independent power producers.
Instead, the court ruled that the city and the government should follow intergovernmental channels to clarify roles and responsibilities.
“Basically, the judge did not deal with the substantive constitutional decision. It means more delays, ”said Nicole Loser, an attorney for the Center for Environmental Rights, which presented evidence to support the city’s case. “It is a procedural trial.”
Had it won the case, the city of four million people had planned to establish its own power purchase office, which would secure supplies in six years. Bloomberg reports.
That would have paved the way for other municipalities to follow suit and eroded revenue from Eskom, which no longer generates enough revenue to cover its costs and relies on government bailouts to continue operating.
Read: South Africa just took a big step to end cargo shedding: Ramaphosa
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