In our efforts to become the first province to overcome load shedding, we welcome the decision by the George Municipality to develop a pilot project where the municipality will investigate its options of wheeling electricity on its grid. In essence, the municipality aims to develop a more sustainable business model, which will allow the delivery of electricity generated by a private operator at one location to a buyer or off-taker in another location via the municipal network. This forms part of a larger process where the municipality is aiming to migrate to a more sustainable financial model in the future.
By wheeling electricity through the municipal grid to businesses and individuals, it creates another revenue stream for the municipality, encourages and attracts renewable energy investment, and establishes a business-friendly environment for local businesses and residents. Following the Council decision, the Municipality will now commence with the process of amending its by-laws and policies, and engage with the national energy regulator (NERSA) with regards to the required trading licenses.
MPP Deidré Baartman says: “The decision taken by the George municipality would make it amongst the first in South Africa to explore electricity wheeling and energy trading. In these challenging economic circumstances, the innovative pilot project creates an economic environment that not only attracts investment, but allows businesses to grow and develop.
This exciting announcement comes just days after Stellenbosch Municipality, in partnership with the Western Cape Government, announced that it would engage on the use and generation of alternative energy supplies for the municipality.
The energy sector in South Africa is in the process of transforming to a more diverse industry and these decisions taken by municipalities assist with this transition. It shows that DA-led local governments care not only for residents and businesses but also for the sustainability and future of their regions.”
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