Ekurhuleni given the go-ahead to procure IPPs

The City of Ekurhuleni in Gauteng has been given the go-ahead to procure new electricity generation capacity directly from Independent Power Producers (IPPs).

Electricity and Energy Minister Dr Kgosientsho Ramokgopa has announced a section 34 Ministerial Determination for the City.

This will see the procurement of 2000 megawatts of energy in planned projects at the cost of R16.2 billion.

Ramokgopa says this will also reduce dependence on Eskom and bring employment opportunities in construction and operations for Ekurhuleni residents.

“Ekurhuleni helps us to resolve two things: our commitment to ensure that we have energy security, especially in the time now of geopolitics.

I think it’s important that we have room, or like runway, to allow the economy to grow.

We have an ambition of 3% economic growth, and electricity is important.

Secondly, as the mayor said, it’s about our ambition to reduce the high price of electricity for electricity that is affordable.” Video: Update on outcome of Ekurhuleni’s bid to buy electricity from independent producers