Joburg's R401-million proposal to reduce three levels of load-shedding

The City of Johannesburg (CoJ) has launched an R400 million programme to reduce load-shedding by up to three stages and, eventually, to eliminate cyclical power interruptions in the city.

Johannesburg Mayor Mpho Phalatse made the statements during a briefing in the Mayoral Parlour. She stated that the CoJ is considering establishing an infrastructure fund to assist fund the project.

“City Power has costed a R401-million budget for a plan that could in the short-to-medium-term avert up to Stage 3 load-shedding,” Phalatse said.

She also provided a breakdown of how the city would spend the budget.

“At R20 million, we can recommission the two existing open-cycle gas turbine stations,” Phalatse said.

“This would, of course, require the city to procure and burn diesel. We are already sitting with 1.2 million litres of diesel for these sites.”

The mayor stated that when needed, the open-cycle gas turbine units will contribute 74MW to the network.

Ripple Relay Systems will cost R85 million, allowing City Power to remotely control power-hungry equipment like geysers and swimming pool motors. According to the CoJ, this would lower network demand by 80MW.

The project also includes the purchase and deployment of smart metres and communication technologies, which City Electricity will employ to control the amount of power supplied to residential customers.

“So instead of completely turning the power off, we will be able to supply homes with enough energy to power essential needs,” Phalatse said.

“This requires an Energy Management System upgrade, costing R120 million that will enable City Power to better monitor, control, and optimise the performance of its transmission system.”

The mayor, however, stated that the CoJ does not have R400 million available for the project.

“We are therefore exploring the establishment of an infrastructure fund, and we will be approaching development finance institutions, the private sector, [and] the Provincial and National Governments to fund this project,” Phalatse said.

If City Power acquired the necessary cash today, it would take six months to implement the mitigation plan.

According to Phalatse, the 205 days of load-shedding in 2022 were devastating to the local electricity utility.

Significant losses were incurred as a result of decreased sales and revenue, increased personnel expenses due to overtime, equipment failure and damage, and criminal conduct such as theft and vandalism.

“Not only does City Power lose revenue when the lights go out, but the entity is also forced to spend more money as a result,” Phalatse said.

“For the period between 1 July 2021 to 11 November 2022, City Power experienced 122 days of load-shedding with 2,175 incidents of theft and vandalism.”

The electricity provider disclosed on January 19, 2023, that it had ran out of substation spares and had spent R200 million rebuilding minisubstations owing to theft, vandalism, and load-shedding.

In terms of criminality, Phalatse stated that theft and sabotage of energy infrastructure are carried out by organised syndicates rather than amateur criminals.

“Therefore, my Office is again writing to the Gauteng Police Commissioner, Lieutenant-General Elias Mawela to dedicate resources to this attack on Joburg,” she added.

Load-shedding is also having a severe impact on the city’s budget, with Phalatse claiming that the city is “in the midst of an economic emergency” as a result of the continual cyclical power interruptions.

Joburg aims to cut one stage more than Cape Town

“Ultimately, we are working towards procuring an additional 500MW of electricity, which means off-setting up to Stage 5 load-shedding,” Phalatse said.

Her declaration comes after the City of Cape Town launched its cash-for-power scheme, which it claims would offer citizens with four levels of load-shedding protection within three years — one stage less than the CoJ’s ultimate target.

Participants will get compensation for selling extra electricity to Cape Town’s grid, according to Mayor Geordin Hill-Lewis.

“Payments to commercial customers will be possible before June, and within the year for any Capetonian with the necessary City-approved generation capacity,” he said.

“If you’re thinking of investing in a solar system, it just got more attractive.”

He said the city aims to buy excess electricity from as many of its customers as are willing to sell.

“These customers may now produce as much power as they can from their approved systems and feed it into Cape Town’s grid,” Hill-Lewis said

“Under this plan, we will also pay these customers an incentive over and above the Nersa-approved tariff as they help us turn the corner on load-shedding.”