The City of Cape Town has allocated more than R6 billion to electricity infrastructure in its 2026/27 budget.
The investment aims to strengthen the city’s power network, improve access to electricity and support the move towards cleaner energy sources.
Mayoral Committee Member for Energy Xanthea Limberg said the City remained focused on expanding access and reducing costs while absorbing some price increases caused by external pressures.
The budget supports Cape Town’s Energy Strategy, which seeks to improve energy security and reduce the city’s dependence on Eskom.
Billions allocated to major energy projects
The City has set aside R1.8 billion for energy-secure service delivery.
A further R656 million will go towards renewable energy generation systems while R589 million has been allocated to the Steenbras hydroelectric plant.
Steenbras allows the City to generate electricity during periods of high demand and helps reduce reliance on Eskom.
The budget also includes R492 million for a ground-mounted solar photovoltaic project, which is expected to roll out between 2027 and 2029.
Another R159 million will support small-scale embedded generation while R59 million has been allocated to the City’s municipal energy-efficiency programme.
Streetlights and transmission network upgraded
Cape Town plans to spend R1 billion on modernising streetlights over the next three years.
Of this amount, R165 million will be used to replace older streetlights with energy-efficient LED technology.
The City has also allocated R1.4 billion to transmission network developments over three years.
Planned work includes upgrades to the Gugulethu-Mitchells Plain 132kV electricity line and improvements at the Oakdale and Paardevlei substations.
A total of R309.6 million will support essential service connections across Cape Town.
More households could receive electricity
The City has allocated R44.8 million to extend electricity access to households that are not yet connected, including qualifying homes in informal settlements.
According to the City, 97.8% of households are connected to the electricity grid in areas where connections are possible.
The investment forms part of a wider infrastructure drive, with 70 cents of every rand in the City’s budget directed towards electricity, roads, transport, water, sanitation and stormwater infrastructure.
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