City commits more than R1,2 billion on energy security, diversification
24 April 2026
The Draft 2026/27 Energy Budget over the next three years of R71,3 billion in total capital and operational expenditure points to the City's commitment to enhancing energy security, infrastructure investment, and improved affordability. The City’s planned commitments include a R1,245 bn investment over the medium-term on energy security systems and Steenbras pumped storage power station upgrades.
‘This budget affirms our plans to secure Cape Town’s dynamic, decentralised energy future, as we lessen our reliance on Eskom and move toward cleaner and more sustainable energy sources. Over the next three years, the City plans to invest R659 million in renewable energy procurement and a further R586 million in life-extension upgrades at the main plant of the Steenbras pumped hydro-electric power station, totalling an outlay of R1,245 billion in energy security investments. These investments are reflective of this administration’s unwavering commitment to secure more affordable energy for Cape Town’s residents and businesses,' said Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Additional R1 bn in planned streetlighting investments
‘We view streetlighting as a fundamental basic service that the City consistently delivers more reliably compared to other metros. Planned expenditure includes R165 million in LED streetlighting installations, enabling the City to retrofit additional lamps across its network of more than 245 000 streetlights and maintain burn rates consistently around our 90% target. The biggest threat to our aim of creating safer and brighter communities remain illegal connections and theft that impact infrastructure and leave our communities and motorists in the dark. We continue to roll out innovative interventions to tackle these criminal acts.
‘The City continues to protect residents and businesses from excessive Eskom-driven tariff hikes. Residents will pay just 6,67% more on average for their electricity this financial year. This is 2,34% lower than the Nersa-approved 9,01% Eskom increase to municipalities. Of the tariff income for electricity, approximately 70% goes to buying bulk electricity from Eskom. Eskom’s input cost is the biggest driver of increases in the tariff,' said Alderman Limberg.
Comment on the City’s tabled budget before 30 April 2026. Submit comments via:
For the full draft budget 2026/27 information, amendments to the Rates Policy as well as the general valuation 2025, visit the City's website.
Published by:
City of Cape Town, Media Office
