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Sustainable electricity provision at the municipal level in South Africa

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Background

Cities in South Africa are responsible for around 40% of the total national power demand. Many municipalities depend on surplus revenues from electricity to subsidise their operations. At the same time government policy requires that they implement EE programmes and facilitate small-scale RE generation which threatens their financial sustainability. In parallel the high-end users who generate the greatest revenue are also the most likely to seek alternatives such as small-scale solar PV systems. This situation threatens the ability of metropolitan authorities to deliver electricity and other services to poor populations. The challenge is therefore to develop a tariff system that can reconcile these conflicting requirements while promoting the wide rollout of small-scale PV systems.

Purpose

To develop business strategies with city electricity departments that ensure tariffs enabling cities to provide services while optimising the rollout of small scale PV in a manner consistent with political priorities

Implementor

Sustainable Energy Africa (SEA)