In a bid to strengthen its energy security and reduce dependence on Eskom, the City of Johannesburg says it has launched a feasibility study into the potential acquisition of Kelvin power station and Egoli Gas.
According to environment and infrastructure services MMC Jack Sekwaila, discussions were at an early and exploratory stage and neither Kelvin power station nor Egoli Gas have been formally engaged regarding potential acquisition.
Sekwaila said the feasibility study is intended to inform decision‑making and does not amount to a decision to acquire the assets.
He said Kelvin power station and Egoli Gas historically were part of the city’s broader energy ecosystem, and their consideration represents a possible reintegration rather than an entirely new concept.
The study has been tabled before council.
Sekwaila said the initiative reflected a strategic and responsible step in evaluating options that could help stabilise electricity supply, improve affordability over time, and enhance the resilience of Joburg’s energy system.
The city’s energy challenges, characterised by load-shedding, rising electricity tariffs and constrained national generation capacity, have underscored the need to explore diversified, locally anchored energy solutions, he said.
“The feasibility study reflects the city’s obligation to explore sustainable solutions that can protect residents and businesses from supply disruptions and escalating costs,” Sekwaila said.
“It is a prudent exercise aimed at understanding whether assets such as Kelvin power station and Egoli Gas can contribute meaningfully to Joburg’s long-term energy security, while ensuring any future decisions are grounded in sound financial, technical and governance considerations.”
The assessment of Kelvin power station and Egoli Gas is not a decision to acquire, but a necessary step to determine whether the assets can deliver real value for residents, businesses and the city over the long term.
— Tshifularo Mashava, City Power CEO
City Power CEO Tshifularo Mashava said the entity had a duty to explore all viable options that could strengthen energy security, reduce the city’s long-term exposure to national supply constraints, and place Joburg on a more sustainable and resilient energy footing.
“The assessment of Kelvin power station and Egoli Gas is not a decision to acquire, but a necessary step to determine whether the assets can deliver real value for residents, businesses and the city over the long term,” Mashava said.
Kelvin power station has for decades contributed about 10% of the city’s base load electricity requirements. According to the city, preliminary assessments have indicated electricity procured from Kelvin has historically been more cost‑effective than bulk supply from Eskom.
Egoli Gas’s extensive reticulated gas network supplies residential, commercial and industrial customers across Joburg.
“Integrating gas infrastructure into the city’s broader energy planning could enable a more diversified energy mix, support hybrid energy solutions for businesses, and contribute to future decarbonisation efforts, including the potential transition to cleaner fuels over time,” Sekwaila said.
He said the feasibility study would rigorously assess financial viability, funding options, regulatory and licensing requirements, environmental compliance, operational readiness and workforce implications.
Sekwaila said council would be guided by the outcomes of the process before further decisions were considered, and the findings would be reported back to the city’s governance structures for consideration.
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