Municipalities in good financial standing may soon be able to develop their own power generation projects.
This according to Department of Mineral Resources and Energy Minister Gwede Mantashe, who gazetted amendments to Section 34 of the Electricity Amendment Act on Friday.
“This gives effect to President Cyril Ramaphosa’s commitment during the State of the Nation address that government will enable municipalities in good financial standing to develop their own power generation projects,” the department’s statement read.
“This will ensure an orderly development that is in line with the applicable Integrated Resource Plan and municipal Integrated Development Plans.
“Furthermore, the amendments will ensure that Section 34 Determination requests are from municipalities that are in good financial standing with feasible project proposals.”
An internal procedure has been initiated to make sure that Section 34 Determination requests are attended to “in the shortest time possible”.
Municipalities wanting to generate their own electricity must submit a detailed feasibility study, demonstrate sound financial standing, and ensure that their request be aligned to the municipality’s Integrated Development Plan.
(Compiled by Nica Richards)