Joburg eyes Kelvin Power and Egoli Gas to cut Eskom reliance
The City of Johannesburg is investigating the purchase of Kelvin Power Station and Egoli Gas
Image: Freepik
The City of Johannesburg is investigating the purchase of Kelvin Power Station and Egoli Gas as part of efforts to reduce its reliance on Eskom’s constrained electricity supply.
This comes as some parts of the city continue to grapple with load shedding and intermittent power disruptions, affecting both households and businesses.
MMC for Environment and Infrastructure Services, Jack Sekwaila, said the feasibility study is a "prudent exercise in proactive planning", aimed at exploring locally driven solutions to protect residents and businesses from rising costs and ongoing supply challenges.
"The City has initiated a formal feasibility study to explore the acquisition of Kelvin Power Station and Egoli Gas, marking a decisive move to de-risk the municipal economy from national supply constraints",.
"The study, undertaken through City Power, seeks to assess the viability of reintegrating these historic assets into the City's energy ecosystem. The strategic objective is to diversify supply sources, improve affordability, and reduce the municipality's long-term reliance on Eskom's constrained grid".
Kelvin Power Station currently supplies roughly 10% of the city’s base-load electricity. According to the City, preliminary analysis suggests that power from the plant has historically been cheaper than bulk electricity purchased from Eskom. Egoli Gas, meanwhile, provides an extensive gas distribution network that could support hybrid energy solutions and future decarbonisation efforts.
The move follows other interventions by City Power, including the introduction of Independent Power Producers (IPPs) and the rollout of solar microgrids.
City Power CEO Tshifularo Mashava said the assessment is a critical part of the utility’s Sustainable Energy Strategy, adding that the study will determine whether acquiring these assets would deliver real long-term value for the city and its residents.
“We have a duty to determine whether these assets deliver real value for the City over the long term," Mashava said.'
IOL also previously reported that eThekwini Municipality is pursuing similar measures, aiming to cut national grid reliance by 20% by 2026 and 40% by 2030 through 400 MW of local power from solar and Gas-to-Power projects with IPPs.
“The embedded generation will reduce eThekwini’s net dependence on Eskom supply. Potentially mitigating Stage 3 load shedding across industrial and commercial zones,” Minister of Electricity and Energy Kgosientsho Ramokgopa said.
mthobisi.nozulela@iol.co.za
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