Ekurhuleni Granted Section 34 Determination to Procure 2 400 MW from IPPs

Posted 19 October 2026 Written by Acts Online
Category Energy Law

Brought to you by SAnews: In terms of section 34 of the Electricity Regulation Act, No. 4 of 2006, the Minister of Electricity and Energy has granted a Ministerial Determination authorising the City of Ekurhuleni Metropolitan Municipality to procure 2 400 MW of new generation capacity from Independent Power Producers (IPPs).

The determination follows municipal procurement applications previously granted to the City of Cape Town (220 MW) and eThekwini Metropolitan Municipality (400 MW), establishing Ekurhuleni as the largest municipal generation allocation approved under section 34 to date.

Approved Generation Mix

The 2 400 MW procurement framework is allocated across the following generation and grid-interconnection categories:

  • Solar Photovoltaic (PV): 1 237 MW, comprising 1 137 MW of embedded generation within the municipality;
  • Natural Gas: 780 MW, including 535 MW to be wheeled across the transmission grid;
  • Waste-to-Energy: 183 MW; and
  • Innovative Energy Technologies: 200 MW.

The municipal IPP programme is projected to attract R6.2 billion in direct infrastructure investment and realise an estimated R36 billion in municipal bulk purchase savings over a 20-year lifecycle.

What this means for you, your business, or your clients

  • For yourself: Residential consumers within the Ekurhuleni supply footprint face prospective long-term reductions in municipal electricity tariffs of up to 31% as cheaper IPP capacity displaces Eskom bulk purchases.
  • For your business: Commercial and industrial operations in Ekurhuleni can negotiate wheeling and bilateral power purchase agreements (PPAs) under the approved 535 MW wheeled gas and embedded PV frameworks to mitigate load curtailment risks.
  • For your clients: Energy project developers, legal advisors, and EPC contractors should prepare compliance documentation for municipal public procurement tenders, municipal finance regulations, and grid interconnection agreements aligned with the city’s 2 400 MW allocation.

Originally published at https://www.sanews.gov.za/south-africa/ekurhuleni-receives-go-ahead-procure-2400-mw-ipps

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