Joburg Spends R518 Million Bringing Solar Power to Informal Settlements

• City Power is investing R517.8 million in solar microgrids to provide legal electricity to five informal settlements in Johannesburg.
• The initiative aims to combat illegal connections, reduce City Power's R4.5 billion in non-technical losses, and enhance safety where conventional grid connections are unfeasible.
• Households connected to the microgrids pay tariffs, with support available for vulnerable residents through the Expanded Social Package and Free Basic Electricity programs.
• Funding for the program originated from the Gauteng Energy Emergency Response Plan, with collaboration between City Power and the City of Johannesburg's Human Settlements Department.
• The city initially planned to expand the program to 21 informal settlements during the 2024/5 and 2025/6 financial years, though future projects are now contingent on the Human Settlements Department's budget and timelines.

By providing households with legal electricity connections and meters through these solar microgrids, the initiative seeks to mitigate illegal connections, enhance overall safety, improve service reliability, and bolster revenue collection for the utility.

The City of Johannesburg, through its wholly-owned power utility City Power, is undertaking a significant investment of R517.8 million to deploy solar microgrids in five of its informal settlements. This initiative aims to provide safe, reliable, and legal electricity connections in areas where traditional grid infrastructure is not feasible. The program specifically targets informal settlements, addressing a persistent challenge for the municipality in providing essential services.

These solar microgrids are currently being implemented across five distinct locations: Amarasta and Vukani in Alexandra, Shalazile in Denver, The View in Booysens, and Vlakfontein in southern Johannesburg. While Amarasta and Shalazile are already complete and operational, Vlakfontein and Vukani are presently under construction. The project at The View is partially finished, indicating varied stages of progress across the portfolio. The Amarasta site in Alexandra served as the initial pilot for Johannesburg's microgrid program, with its installation occurring during the 2023/4 financial year, providing crucial insights for subsequent projects.

City Power's decision to implement solar microgrids in Johannesburg's informal settlements stems from the limitations of conventional grid electrification, which often faces constraints such as insufficient bulk infrastructure, land availability issues, safety concerns, and technical feasibility challenges. The utility manages over 300 informal settlements within Johannesburg, where illegal connections, electricity theft, meter tampering, and unmetered consumption contribute substantially to its financial losses. Isaac Mangena, City Power's general manager for public relations and communication, highlighted that non-technical losses for the utility are estimated at approximately R4.5 billion.

By providing households with legal electricity connections and meters through these solar microgrids, the initiative seeks to mitigate illegal connections, enhance overall safety, improve service reliability, and bolster revenue collection for the utility. These microgrids are not designed to replace existing conventional electricity infrastructure but rather to serve as an alternative solution where traditional grid expansion is impractical or impossible.

Households connected to these City Power solar microgrids are required to pay municipal electricity tariffs for their consumption. To support vulnerable and indigent residents, the City of Johannesburg offers assistance through its Expanded Social Package, which helps with various municipal services. Additionally, qualifying households can benefit from the Free Basic Electricity program, which provides a fundamental allocation of electricity.

The electrification program initially received funding through the Gauteng government's Energy Emergency Response Plan. Following the successful Amarasta pilot, the City of Johannesburg's Human Settlements Department became actively involved, collaborating with City Power. The Human Settlements Department took the lead in identifying and prioritizing settlements in need of electricity services and driving project timelines, while City Power provided essential technical support, planning, and implementation expertise. Notably, the Shalazile site in Denver was established to rehouse residents displaced by the tragic 2023 Usindiso Building fire, which claimed 77 lives.

The City of Johannesburg initially envisioned expanding this solar microgrid program to 21 informal settlements during the 2024/5 and 2025/6 financial years; however, the budget for future projects was subsequently transferred to the Human Settlements Department, and their implementation is now dependent on budget availability, procurement processes, and the department's timelines. This ambitious plan underscores the city's commitment to addressing the widespread challenge of informal settlement electrification. The ongoing projects and future rollout plans highlight a strategic shift towards decentralized energy solutions in South Africa.

This initiative impacts legal frameworks for municipal infrastructure development and public procurement in Johannesburg. The provision of South Africa microgrid legal connections and the establishment of municipal electricity tariffs for informal settlements set precedents. Lawyers advising energy providers, developers, or compliance officers should closely monitor regulatory developments concerning microgrid operations, tariff structures, and the legal implications of providing electricity to informal settlements, as this model could inform future urban development and energy policy.

This initiative impacts legal frameworks for municipal infrastructure development and public procurement in Johannesburg. Lawyers advising energy providers, developers, or compliance officers should monitor regulatory developments concerning microgrid operations, tariff structures, and the legal implications of providing electricity to informal settlements.

Source: Original reporting via #PowerTracker