OP-ED: Cities hold the key to a sustainable electricity supply By Louise Scholtz
During the latest spate of extreme load shedding, much has been written about an imploding Eskom hobbled by financial woes, State Capture and mismanagement; similarly, the pain that load shedding has inflicted on small- and medium-sized businesses and households. However, very little has been said about the myriad ways that load shedding impacts on municipalities and the missed opportunity to empower our cities for a new energy future.
Last, there are issues relating to security, crime and the general functionality of cities. Dark streets and disabled alarm systems are an additional headache for law enforcement, with the City of Johannesburg’s reportedly intensifying policing, but also the impact on people’s ability to move around the city at night.
In short, and without going into detail, cities are obliged to purchase electricity from Eskom. They are also limited in the extent to which they can generate their own embedded electricity or build freestanding renewable energy plants, and lack permission to purchase electricity generated through renewable energy sources from independent power producers directly.
Metros also have the opportunity to leverage against future electricity price hikes by Eskom through sourcing renewable energy on a tariff structure, and in so doing improving their long-term financial sustainability and the ability to deliver affordable electricity to consumers. Tariff certainty would send long-term pricing signals to the market — creating market stability and certainty, which would allow for the growth of local markets.
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