Press release
29 March 2021
Drakenstein Municipality has been identified by the Western Cape Government as one of six municipalities that will, over the next year, get assistance to start generating or buying its own power.
This came shortly after National Government gazetted new regulations earlier this month that allow municipalities to generate their own electricity, and buy from producers other than Eskom.
The Western Cape Government has established the Municipal Resilience Project to investigate alternative energy solutions to mitigate the impact of loadshedding. This pilot study will include the following six municipalities: Drakenstein; Stellenbosch; Saldanha; Mossel Bay; Overstrand; and Swartland.
Alderman Conrad Poole, Executive Mayor of Drakenstein Municipality, welcomed the decision and the opportunity to become less dependent on Eskom. “We are well aware of the crippling effect that loadshedding has on our local businesses, residents and the economy as a whole. Our aim is to ensure that businesses do not suffer as a result of loadshedding and that our residents’ lives are least disrupted by it. Therefore, we are grateful to the Western Cape Government for providing funding and assisting with planning.”
Dr. Johan Leibbrandt, City Manager of Drakenstein Municipality, said being included in the Provincial Government’s Municipal Resilience Project is good news. “The Municipality has been exploring the possibility of introducing various alternative electricity options for some time now and will share our findings with the province as a value-add to the project.”
Executive Mayor Poole emphasised that providing electricity to all Drakenstein’s residents and improving their quality of life, are high on the Municipality’s list of priorities. Since 2016, the Municipality has provided 2 357 electricity service connections in informal settlements in Drakenstein, equalling capital expenditure of approximately R56 million.
He said this plan would not only generate an additional revenue stream for the Municipality, but also create opportunities for private entities to provide electricity at an affordable price to Drakenstein’s residents.
The changes to South Africa’s Electricity Regulations on New Generation Capacity legislation require municipalities to apply to the Minister of Mineral Resources and Energy to “procure or buy new generation capacity in accordance with the Integrated Resource Plan”.
Only municipalities that are in “good financial standing” will be allowed to buy or generate their own electricity. Among other interventions, their electricity distribution systems will be technically evaluated to confirm whether the municipalities can support new electricity generation and energy trading.
Dr Leibbrandt said: “The fact that Drakenstein Municipality ticked all the right boxes as far as the requirements for qualification were concerned, is a major feather in our cap. We are ready for this next step in capitilising on alternative energy resources.
“It will obviously take time, as this is a massive assignment and we will be chartering unknown territory. However, I believe we have the expertise and the will to succeed, so that we can absorb Eskom’s loadshedding for our communities, provide uninterrupted electricity to our residents, and make sure our businesses are able to stay open during their operating hours.”
In his budget speech earlier this month David Maynier, Western Cape Minister of Finance and Economic Opportunities, announced that the Provincial Government allocated R48.8 million over the medium term, and provided a further R20 million in the provincial reserves, for this project.
Minister Maynier indicated that the project is aimed at helping the Western Cape avoid loadshedding, which is costing the province R75 million a day. In the past, municipalities were forced to buy all of their electricity from Eskom.
[END]
Issued by: Communication and Marketing, Drakenstein Municipality
