The cities’ role in managing the energy supply challenges

We outline what can be done in the municipal sphere to help fix the country’s energy shortage.


South Africa’s energy shortage is having a profound impact on its cities. Economic growth and jobs continue to be affected at a time when cities urgently need to recover from the COVID-19 crisis to retain their competitiveness and attractiveness.  

With the country’s current power challenges, municipalities need to take measures to help resolve the energy supply gap. Cities’ energy strategies will play a key role in achieving financial sustainability and energy stability in the long run.

Our brief outlines several immediate measures to bridge the energy supply gap and end load shedding in the short run. These solutions include municipalities:

  • enabling wheeling of energy generation (both the infrastructure and the policy framework to deliver energy from generator to end-user through existing distribution or transmission);

  • supporting the installation of microgrids and small-scale embedded generation;

  • supporting the purchase of power from Independent Power Producers (IPPs); 

  • and prioritising spending on repairs and maintenance of infrastructure, as well as protecting it. 

Municipalities need to act now to put in place the necessary policy frameworks, mobilise resources that will enable wheeling, and re-enter small and medium scale generation into the municipal grid. Crucially, municipalities will also need to establish a long-term strategy regarding their own role in electricity provision going forward.

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Contact us

Craig Kesson

Craig Kesson

Partner, Strategy& South Africa

Tel: +27 (0) 21 529 2000

Nasreen Mosam

Nasreen Mosam

Partner, Strategy& South Africa

Tel: +27 11 287 0973