Procurement of 400 MW of private power to create jobs in eThekwini

The KwaZulu-Natal provincial executive council has approved the eThekwini metropolitan municipality’s procurement plan for an initial 400 MW of new generation capacity from independent power producers.

This will create 8 000 job opportunities through a public-private partnership (PPP), Mayor Mxolisi Kaunda announced at the Energy Transformation Summit, in Durban, on March 1.

"So far, 100 MW has already been allocated to solar photovoltaic and 300 MW for gas-to-power,” he said.

These initial 400 MW of projects are expected to reach commercial operation in 2025 and 2026.

“We will collaborate with the private sector through PPPs to build a gas import terminal, gas storage infrastructure and gas distribution network in Durban, to support the developmental mandate, industrialisation and create a new stream of revenue for the municipality,” he said.

Kaunda also outlined the municipality’s short-, medium- and long-term plans to find lasting solutions to the perennial energy crisis in South Africa.

“The municipality has set a short-term target of reducing its reliance from the national grid by 20% in 2025, with a further plan to reduce reliance by 40% in 2030 and achieve energy independence by 2035.

The summit was held to discuss the role of government in new developing markets such as the hydrogen economy, the procurement of new generation capacity from independent power producers and energy efficiency demand side management options.

The municipality intends to procure an additional 2 600 MW of new generation capacity over the medium to long term.

In the new financial year, it also plans to start procurement of 50 MW of waste-to-energy capacity, 300 MW of offshore wind and 940 MW of nuclear power.

Kaunda said the municipality’s energy transition policy did not favour any single type of technology and that it planned to procure 400 MW of new coal capacity.

“We know that many parts of this province have an abundance of coal reserves. The fact that in our midst we have energy experts, academics, investors and the leadership from all spheres of government demonstrates that energy security is everybody’s business. While a great deal has been achieved, the energy crisis is reversing the gains we have made in achieving this noble goal," Kaunda said.