Finance and Economic Opportunities

Question by: 
Hon Nobulumko Nkondlo
Answered by: 
Hon Mireille Wenger
Question Number: 
4
Question Body: 

(a)   What are the details of the municipalities that have energy master plans, (b) can a copy of each of the energy master plans be made available, (c) what are the estimated costs for the implementation of these strategies, (d)(i) what are the details of the municipalities that do not have energy master plans and (ii) what are reasons thereof and (e) what is her Department’s interventions to ensure that every municipality has this plan?

Answer Body: 

 

I am informed of the following:

 

  1. Energy master plans also referred to as a mini-IRPs and are long term plans (20+ years) that look at potential options for generation expansion given a future demand. Electricity Master Plans are shorter term plans that provide for the maintenance and expansion of existing municipal distribution network and informs municipal capital expenditure planning and IDPs. For information regarding the electricity master plans, please refer to written reply to question 16 of Question Paper 07.

 

The City of Cape Town, Garden Route District Municipality, George Municipality and Stellenbosch Municipalities have all completed municipal energy master plans[1]. George Municipality completed their municipal energy master plan in 2019, followed by Garden Route District Municipality, City of Cape Town and Stellenbosch Municipalities in 2022.

 

  1. The Garden Route District Municipality energy master plan is available online at: https://www.gardenroute.gov.za/wp-content/uploads/2022/08/GRDM_FinalReport_2022Mar.pdf.

The City of Cape Town, George Municipality and Stellenbosch Municipality have not published their municipal energy master plans and I encourage the member to approach them directly to request the respective plans.

 

  1. The municipal energy master plans do not provide information on cost of implementation but do provide indication of costs of supply infrastructure, according to scenarios, required to meet electricity demand over the long term in Net Present Value terms.

 

(d)(i) the City of Cape Town, Garden Route District Municipality, George, and Stellenbosch Municipalities are the only known municipalities with municipal energy master plans in the Western Cape.

 

(d)(ii) Our understanding is that most municipalities have prioritised operational and shorter-term work given resource constraints in this national energy crisis, and the impact of national load shedding on service delivery, municipal networks, and revenue.

 

(e) A municipal energy master plan could cost between R1.5 million and R2.5 million depending on scope. Whilst it may not be financially feasible to undertake a municipal energy master plan for every municipality, the Western Cape Government intends to undertake a provincial IRP that would encompass all Western Cape municipalities and provide guidance on a potential pathways to achieve provincial energy objectives and ensure that municipalities are enabled to make informed choices.

 

[1] Municipal Energy Master Plans are long term energy planning studies that provide potential pathways for development of electricity demand and supply options for the municipality. These Municipal Energy Master Plans (MEMPs) are also known as mini-IRPs i.e. mini-Integrated Resource Plans.

Date: 
Friday, August 25, 2023
Supporting Docs: 
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