Municipal Electricity Infrastructure Under the Spotlight

Department of Energy

The energy department is, in conjunction with the Development Bank of Southern Africa, looking at available options to fund the maintenance and refurbishment backlog in municipal electricity infrastructure.

The department’s deputy director-general, Jacob Mbele, revealed this in a speech delivered on behalf of the energy minister at the Association of Municipal Electricity Utilities 26th Technical Convention held in Pretoria.

The DDG added that his department was hoping to engage with the municipal sector through the cooperative governance and traditional affairs department on the proposal within the next two months or so once the proposal had been finalised.

The DDG also declared that the electricity generation and distribution landscape in South Africa was changing at a rapid pace as compared to pre-2010.

The DDG also pointed out that there is significant change in the energy mix post 2030 “which is mainly driven by the decommissioning of old coal power plants that reach their end of life”.

“Detailed studies and engagements will have to be undertaken to better inform the energy mix or path post 2030.”

The department was also considering enhancements of the electricity procurement regime to ensure sustainable energy supply and security.

Greater focus needed to be placed on the distribution sector in order to embrace the energy revolution and transform the business models.

The department also hoped that the “study to review the electricity industry and the electricity pricing policy will provide guidance to begin to address some of the structural and pricing challenges”.

Sabinet Cape Town Office