City of Joburg Mayor Dada Morero has revealed that the high costs of electricity have forced the city to look to alternative energy solutions.
Image: Itumeleng English / Independent Newspapers
Eskom's skyrocketing electricity tariffs have forced the City of Joburg to consider alternative energy solutions and announce plans to roll out its Electric Vehicle (EV) battery storage infrastructure, including investment into EV bus services across its seven city regions.
This initiative was revealed by City Mayor, Dada Morero, and Member of the Mayoral Committee (MMC) for Environment and Infrastructure Services Department (EISD), Jack Sekwaila.
The two officials made the announcement on Tuesday while leading the unveiling of the city's inaugural EV charging station, situated at the City Power headquarters in Booysens, south of Johannesburg.
Morero said the unveiling of the first station in Johannesburg was a commitment by the city to position City Power from an electricity company to an energy entity.
"The EV programme launched today is part of Johannesburg's broader strategy to modernise municipal operations while strengthening service delivery. By introducing EV and building EV charging infrastructure, the city is improving operational efficiency while reducing long-term costs and environmental impacts," he stated.
The mayor also noted that the city is currently engaging with two Chinese vehicle manufacturers and various stakeholders to explore opportunities for local job creation.
Morero said that, over and above the benefits of job creation in the city, the move seeks to ensure that the city benefits through EV infrastructure development.
"This transformation also includes ensuring that we transform the way that we procure energy, and as we transition and transform City Power into an energy business, we need to bring battery storage into the city to mitigate electricity costs.”
Morero explained the advantages of battery storage, noting that the city purchases electricity from Eskom at both peak and off-peak tariffs.
He stressed that peak pricing is extremely high. "When these costs are passed on to consumers, we face significant financial shortfalls because of infrastructure losses, which can be as high as 20%."
Morero added that while the initial costs of adopting EV infrastructure, including procuring EV vehicles and metrobuses, the long-term financial savings are something that the future of Joburg cannot do without.
"Through the transition to EV, City Power is positioned to realise substantial cost savings up to R29 million per annum under a leasing model, and as much as R49.3 million annually if the vehicles are acquired outright and amortised over five years," he stated.
City Power launched its first EV charging station at the power utility headquarters in Booysens, south of Johannesburg.
Image: Itumeleng English / Independent Newspapers
Sekwaila reinforced the city's commitment to establishing an extensive EV ecosystem.
"We aim to roll out this infrastructure across all our city regions. This is a promise we are making as we build ecosystems of tomorrow today, demonstrating that we are a city that innovates and leads in green energy."
City Power's Chairperson, Mokosini Garode, highlighted this initiative as crucial for the organisation's modernisation efforts. He stressed the significance of strong governance and ensuring long-term financial stability.
"The launch of City Power's electric vehicle charging station represents an important milestone that aligns with responsible planning, translating into infrastructure that prepares us for the future," Garode noted.
The mayor believes that the City of Gold can regain its continental leadership position. This requires focused investment and a strong commitment to innovative infrastructure development.
Furthermore, the city must fully leverage the potential of its existing 10-point Energy Plan, which is already fundamentally changing the way the city produces and controls its power, Morero stated.