Municipalities such as those in Johannesburg, Pretoria and Cape Town can now apply to generate their own electricity, provided they have paid their Eskom bill in full.
This comes after Mineral and Energy Resources Minister Gwede Mantashe on Friday published new regulations governing electricity generation in the Government Gazette.
The new regulations require municipalities to apply to the minister of mineral resources and energy to “procure or buy new generation capacity in accordance with the Integrated Resource Plan”.
In the past, municipalities were forced to buy all of their electricity from Eskom.
The new regulations demand that municipalities comply with various requirements, including that they must submit feasibility studies about the projects.
“Further clarity on the conditions municipalities must meet are required, but in the meantime, our green economy team are working with municipalities to better understand these conditions,” said Western Cape Finance and Economic Opportunities MEC, David Maynier.