Municipalities can now generate their own power - and Cape Town may be first up
The South African government will allow municipalities in good standing to source their own power rather than buying electricity solely from the state-owned utility.
Mineral Resources and Energy Minister Gwede Mantashe gazetted of amendments to Electricity Regulations on New Generation Capacity last week.
The amended regulations will enable some municipalities to develop their own power generation projects.
Only municipalities in good financial standing can apply, reports Business Insider SA's Helena Wasserman.
According to Wasserman, the cities of Cape Town and Ekurhuleni may be the first to procure their own electricity.
It appears that qualifying municiplities will be able to both generate their own power and buy power directly from independent power providers (IPPs).
Wasserman says this may be bad news for Eskom, but it's great news for South Africans (especially Capetonians!).
This is what we have been waiting for in Cape Town. The City of Cape Town has been pressing for this.Helena Wasserman, Editor - Business Insider SA
They [City of Cape Town] want to buy their own electricity from independent providers. They don't want to be dependent on Eskom anymore and the government has finally gazetted the changes that would allow municipalities to generate and buy their own electricity.Helena Wasserman, Editor - Business Insider SA
Cape Town is already gearing towards this. The municipality in Ekurhuleni already has landfill gas projects that they are launching.Helena Wasserman, Editor - Business Insider SA
Listen to the discussion for more news from Business Insider SA (skip to 08:45 for electricity story):
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