Private sector needed to solve Joburg energy woes - Phalatse
Johannesburg Mayor Mpho Phalatse says the city needs to enter into partnerships with the private sector to solve its electricity problems.
Phalatse addressed the city’s first-ever energy indaba in Sandton on Monday.
It comes as the city battles to keep up with rising demand, aging infrastructure, and a maintenance backlog of R170 billion.
Phalatse told delegates that the city cannot finance the required maintenance on its own.
"For the city to be able to meet its energy requirements in the shortest possible time, very close collaboration is necessary with the private sector for the requisite investments to materialise. The city recognises that we don’t have the funding to keep up with the required investment in power infrastructure, hence private-public partnerships are seen as the most feasible way forward.
"The power sector generally, including embedded generation, energy storage, and smart grids could leverage huge investment in our city and enable us to create the jobs we desperately need."
She said the Eskom price path is not sustainable for the end-user.
"In 2020 the volume of electricity produced by Eskom fell below the level that was produced in 2004. I do not have to remind you of the tariff increases that have been imposed on the electricity end-user, and it is well-established that Eskom’s price path is not sustainable for the end-user.
"This has a devastating impact on our plans as a city because, without cost-effective and reliable power, our city’s economy is unable to realise its true potential."
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