- More than R6 billion allocated to electricity infrastructure in 2026 and 2027 budget.
- Major funding directed to renewable energy, grid upgrades, and service delivery reliability.
- Over 97.8% of households now connected to the electricity network.
The City of Cape Town has allocated more than R6 billion to electricity infrastructure as part of its 2026 and 2027 budget, signalling a strong push to improve energy reliability, affordability, and sustainability.
The investment comes as municipalities across South Africa continue to manage rising electricity costs and supply uncertainty linked to Eskom. City officials say the funding will support a more resilient and diversified energy system while limiting the impact of external price pressures on consumers.
Mayoral Committee Member for Energy Xanthea Limberg said the programme is focused on expanding access to electricity services while containing costs. The plan aligns with the City’s broader Energy Strategy, which prioritises reliable supply and increased use of cleaner energy sources.
The budget framework shows that 70% of total spending will be directed towards core infrastructure, including electricity networks, transport systems, water supply, sanitation, and stormwater management. Within the electricity segment, several large scale projects have been prioritised.
Key allocations include R1 billion for streetlight modernisation over the next three years and R1.8 billion to support energy secure service delivery. Renewable energy projects will receive R656 million, while R589 million has been set aside for upgrades to the Steenbras hydro plant, a critical asset that helps reduce reliance on Eskom supply.
Efforts to expand electricity access continue, with R44.8 million allocated to connect additional households, including informal settlements. The City reports that more than 97.8% of households already have access to electricity where grid connection is feasible.
Further spending includes R165 million to replace ageing streetlights with energy efficient LED technology, R159 million to support small scale embedded generation, and R59 million for municipal energy efficiency programmes.
Looking ahead, Cape Town has earmarked R492 million for a ground mounted solar photovoltaic project scheduled for rollout between 2027 and 2029. This forms part of a broader strategy to scale up local generation capacity.
Additional infrastructure investment includes R309.6 million for new service connections and R1.4 billion for transmission system upgrades over the next three years. Planned projects include the Gugulethu to Mitchells Plain 132 kV line and upgrades to the Oakdale and Paardevlei substations, which are expected to strengthen network stability across the metro.
Author: Bryan Groenendaal
