Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and Ekurhuleni Mayor, Dr Nkosindiphile Xhakaza, have held a sod turning ceremony to mark the start of construction of the Ekurhuleni Fresh Produce Market 25 MW Solar PV and sustainable energy storage project.
The project forms part of the Ekurhuleni Independent Power Producer Programme, known as EIPPP. It follows the Ministerial Determination issued under Section 34 of the Electricity Regulation Act, which authorises the Ekurhuleni Metropolitan Municipality to procure new generation capacity from independent power producers.
The determination allows the city to develop 2400 MW of generation capacity from renewable energy, gas to power, waste to energy and other technologies. The allocation includes 1237 MW of solar photovoltaic generation, of which 1137 MW will be embedded within Ekurhuleni. A further 780 MW will come from natural gas, including 535 MW wheeled from generators outside the municipality, while 183 MW will be sourced from waste to energy projects. The remaining 200 MW has been allocated to innovative energy technologies.
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Ramokgopa said the determination is significant because of its scale and its potential to reduce Ekurhuleni’s dependence on Eskom. He said Ekurhuleni is the first municipality to apply for such a determination, and that its 2400 MW allocation is substantially larger than the 400 MW approved for eThekwini and the 220 MW approved for the City of Cape Town.
“Ekurhuleni will continue to be grid tied, but this creates the potential to free the City from total dependence on Eskom,” Ramokgopa said. He added that the programme supports energy security, economic growth and more affordable electricity through a mix of renewable and reliable dispatchable generation.
The 25 MW solar plant is expected to supply clean energy to manufacturing companies in Springs, including Kellogg’s, Pilkington Glass and Cobra Water Tech. Electricity generated by the plant will feed into the adjacent power station and be transmitted to manufacturing customers and households in Springs and KwaThema.
Mayor Xhakaza said the independent power producer programme is expected to attract about R6.2 billion in infrastructure investment and create employment opportunities. He said the city is working towards groundbreaking for selected projects before the end of the week.
The city estimates that the programme could generate about R36 billion in savings on bulk electricity purchases over 20 years. Communities currently paying about R3 per unit could save up to 31%, reducing the price to about R2 per unit. A household using 500 kWh per month could save about R500 monthly, while industrial customers are also expected to benefit from lower electricity costs.
The determination provides the regulatory certainty required for appointed independent power producers to move towards financial close, secure funding and begin construction, subject to project specific requirements.
Author: Bryan Groenendaal
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