Newcastillians have enjoyed over 120 days of uninterrupted power, a welcome break from the frequent loadshedding that once plagued the town. However, the Newcastle Municipality is not resting on its laurels; it is actively exploring alternative energy sources to ensure that power outages become a thing of the past.
The IDP notes that an alternative energy source is now being supplied by International Power South Africa (IPSA) through gas turbines.
This development means that the 18MW combined heat and power plant is now contributing electricity to the national grid under a medium-term power purchase agreement with Eskom, which was signed back in 26 August 2010.
Reflecting on this, the Municipality’s IDP assured that IPSA has now successfully restarted operations at its cogeneration plant in Newcastle, following a final agreement on a gas supply contract with Spring Lights Gas.
Then there is the solar plant which the Newcastle Municipality is looking into. As reported by Newcastillian News in May 2024, Newcastle Municipality’s Councillor Bertie Meiring explained that the Newcastle Municipality was collaborating with Vutomi Energy (PTY) LTD, which is partnering with New Phoenix Power, to establish the solar plant in Newcastle.
At the time, Cllr Meiring explained that discussions were underway with the power producers and conducting the necessary investigations, but if the engagements go according to plan, approximately 128 hectares of land will be allocated to the solar plant.
He further stated that the land earmarked for the project is situated near the Newcastle Airport.
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With this said, in line with the discussions surrounding the solar park, the public participation programmes are to still be finalised, as well as the required planning. However, the IDP noted the Newcastle Municipality was investigating the viability of installing a solar system in Normandien and in some parts of Ingogo (portions where MV lines are far from houses).
“These areas were identified for non-grid electricity due to their locations and extreme high cost of building electrical infrastructure. The Department of Energy is keen to fund these projects,” noted the Municipality’s IDP.
The IDP further emphasises that the Municipality manages the electricity networks for Newcastle West, including the CBD and surrounding suburbs, while Eskom supplies the outlying townships and rural areas.
According to the IDP, the electricity backlog within the Municipality stands at 11.3%. Additionally, the IDP highlighted the need to explore pre-paid electricity options within the Newcastle licence area.
Moreover, it was highlighted that electricity metering and billing also needed urgent attention to ensure the accuracy of consumer accounts. The IDP further pointed out that there is currently no electricity master plan in place, meaning long-term capacity planning was lacking. Electricity losses are estimated at 9%.
It was elaborated in the IDP that Eskom was conducting a study to determine the energy capacity required for Newcastle if future developments proceed. Moreover, there are plans to take over Eskom-licensed areas in Newcastle East, including Madadeni and Osizweni, to boost municipal revenue. The IDP also noted that capacity challenges are being addressed through a revised organogram to establish a new electricity department separate from Technical Services.
As the Newcastle Municipality continues to enhance its electricity infrastructure and security, it is important to remember that the Constitution grants municipalities the power to legislate on energy efficiency and renewable energy.
The Municipal Systems Act also empowers municipalities to pass by-laws related to these matters, although developing policies, plans, and strategies have been the preferred approach.
“The Newcastle Local Municipality is no exception to this trend and is currently out on tender for a service provider to collaborate in developing the ESDP. The absence of this crucial plan has implications for an Operations and Maintenance plan, which is also under development. To date, the responsible department relies on a routine maintenance schedule based on breakdown demand,” the IDP concluded.
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