A Legal Analysis of the Role of Local Government in the Production and Procurement of Renewable Energy in South Africa

Abstract

South Africa’s electricity supply crisis has been characterised by recurring load-shedding since 2007, with severe socio-economic and governance consequences for municipalities responsible for basic services such as electricity reticulation as outlined in Schedule 4 Part B and section 156 of the Constitution of the Republic of South Africa, 1996. Although there have been extended periods in which load-shedding has been suspended in recent years, including a prolonged suspension since mid-May 2025 as reported by Eskom, the underlying legal and institutional constraints affecting municipal energy security, affordability, and reliability remain contested and consequential. While municipalities are responsible for distributing electricity within their jurisdictions, they are often constrained because of inconsistent electricity supply from Eskom. Efforts to procure from alternative renewable energy sources such as Independent Power Producers are hindered by the requirement to first obtain ministerial determination in terms of section 34 of the Electricity Regulation Act of 4 of 2006. The requirement for ministerial determination persists even under the amended Electricity Regulation Amendment Act 38 of 2024. While it introduces reforms such as a competitive market structure through a Transmission System Operator, it still centralises significant decisionmaking power to the Minister. As a result, municipalities remain constrained in their ability to independently procure or generate renewable energy to meet local demand. Through a doctrinal research methodology, this research critically examines the legal framework governing the electricity industry with particular focus on local government. It further explores how these legal dynamics impact local government’s ability to procure and generate renewable energy. The research also proposes the legal reforms to strengthen the role of local government in achieving energy security and advancing a just energy transition. Through a case study analysis of the City of Cape Town, the research analyses how municipalities, have leveraged locally available legal mechanisms such as by-laws and strategies to navigate the existing legal constraints in the electricity supply industry and play a more active role in the renewable energy space.