The City of Johannesburg secured a R3.8 billion concessional loan from the German state development bank -KfW to power Johannesburg’s energy needs.
The City said these funds will further the City’s Just Energy Transition (JET) programme – to deliver reliable, affordable and clean energy for all residents and businesses of Johannesburg.
It will also refurbish infrastructure, jack up maintenance programmes and modernisation (technological investments, smart grid development, renewable energy expansion, network resilience, and the reduction of technical and commercial losses), estimated at more than R40 billion.
In addition, the City said it plans to use the funds towards revenue enhancement, operational sustainability, and long-term energy security.
Repayments kick in around May 2031.
City Power, the local energy utility, plans to replace and upgrade high-voltage transformers across Johannesburg, including projects at Allandale, Brynorth, Dainfern, Eikenhof, Hopefield, Mondeor and Ruimsig substations.
The North Riding and Reuven distribution areas, also plan to maintain medium and low voltage infrastructure, replace aged MV cables, CBD network upgrades and the conversion of load centres to 11kV.
Some R395 million of this amount, will go towards smart metering and revenue enhancement.
About 1,700 new public lighting fixtures per year (up from 700 per year), will be installed, including solar high-masts and solar streetlights.
Tebogo Moraka, Group Chief Financial Officer of the City of Johannesburg, said “this agreement also demonstrates that the City of Johannesburg and City Power have been proactive in pursuing sustainable funding solutions and strategic private sector collaboration to address long-standing infrastructure and financial challenges. We will continue engaging additional institutions and development partners to support infrastructure investment, energy reform, and long-term financial sustainability for the benefit of residents and businesses across Johannesburg.”
Picture: Supplied