The City has initiated a formal feasibility study to explore the acquisition of Kelvin Power Station and Egoli G​as, marking a decisive move to de-risk the municipal economy from national supply constraints.

The study, undertaken through City Power, seeks to assess the viability of reintegrating these historic assets into the City's energy ecosystem. The strategic objective is to diversify supply sources, improve affordability, and reduce the municipality's long-term reliance on Eskom's constrained grid.

Councillor Jack Sekwaila, MMC for Environment and Infrastructure Services, emphasises that while the study has been tabled and noted by Council, discussions remain exploratory.

“This is a prudent exercise in proactive planning," Sekwaila notes. “We are exploring sustainable, locally driven solutions to shield residents and businesses from escalating costs and ongoing supply disruptions."

Kelvin Power Station currently provides approximately 10% of Johannesburg's base-load requirements. Preliminary assessments suggest that electricity procured from the station has historically been more cost-effective than bulk supply from the national utility. Similarly, Egoli Gas offers an extensive reticulated network that could support hybrid energy solutions and future decarbonisation efforts.

City Power CEO, Tshifularo Mashava, says the assessment is a necessary step in the entity's Sustainable Energy Strategy. “We have a duty to determine whether these assets deliver real value for the City over the long term," Mashava says.​

The move follows a suite of interventions by City Power, including the introduction of Independent Power Producers [IPPs] and solar microgrids. The feasibility study will rigorously evaluate financial viability, regulatory requirements, and operational readiness. Findings, along with a detailed implementation roadmap, will be reported back to the City's governance structures for final deliberation.

07/01/2026

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