A low-carbon economy roadmap

Given the power crisis facing the country presently, alternative power sources are being investigated. Several projects are planned, which could potentially lead to KwaZuluNatal being the hub for renewable energy in the future.

Below are some key projects being undertaken as part of the City’s and regions roadmap to a low-carbon energy supply.

Independent Power Producers Programme

The roll-out of eThekwini’s Municipal Independent Power Producer Procurement Programme (MIPPPP) is expected to attract approximately R324 billion by 2035. However, the first batch of procurement will attract R10 billion and create over 8 000 jobs. This project will be delivered through a public-private partnerships as outlined in Section 120 of the Municipal Finance Management Act (MFMA) and external service delivery mechanism of Section 76 (b) in the Municipal Systems Act (MSA).

The power generation plants are expected to generate net outputs of 1 576 800 MWh for natural gas and 175 200 MWh for solar power. The combined net energy output is expected to reach 1 752 000 MWh annually going to 2065.

The Municipality presented intentions to procure new generation capacity to the KZN Provincial Executive Council (PEC) on 8 June 2022. The KZN PEC supported the procurement of electricity from IPPs and mandated relevant departments to act accordingly.

As part of the R324 billion plan, the Municipality plans to further procure an additional capacity of 2 600 MW from various sources of power generation. This includes procurement on behalf of other regional municipalities within KZN. This will fast-track regional transformation in the province and restore energy security, not only within the eThekwini region, but across other 10 districts in the province. EThekwini is willing to become an ultimate buyer from IPPs on behalf of KZN and other municipalities.

Gas Economy and Hydrogen Supply Chain Infrastructure

The Municipality’s Sustainable Energy Masterplan outlines that energy consumption will increase by 70% by 2030 if business as usual scenarios continue. Therefore, eThekwini is considering several strategic interventions such as building gas distribution networks and gas storage infrastructure in partnership with the private sector.

The eThekwini Regional Hydrogen Strategy, launched on 2 March 2023 at the eThekwini Energy Transformation Summit, seeks to explore and articulate the role that the eThekwini and Richards Bay districts can play in establishing a hydrogen economy in South Africa. It also uses modelling and analysis to show how hydrogen can help to facilitate the increased use of sustainable energy in the region and possibly create an export market for hydrogen-derived products. EThekwini is the first city in Africa to develop a world-class hydrogen strategy that is built on circular economy principles.

South Durban Energy and Chemicals Park (SDECP)

EThekwini Municipality has established the SDECP, which sees energy infrastructure coupled in the form of a land-based floating system and regasification unit, LNG import terminal and refined products terminal, along with various gas-to-power plants. Hydrogen production and storage, as well as biofuel production and storage will be deployed to turn around the economic situation of South Durban. The SDECP will be delivered through the public-private partnership model and will offer alternatives to pure-play product storage conversions, mitigate deindustrialisation in Durban and defer decommissioning provisions.