- Award winning microgrid demonstrates scalable model for urban electrification.
- Structural and financial barriers continue to constrain wider deployment.
- Looming local elections may accelerate rollout as political competition intensifies.
The Shalazile Microgrid in Denver, Johannesburg is emerging as a flagship example of how decentralised solar can transform energy access in underserved urban communities. Delivered by City Power, the project combines solar PV, battery storage and AI enabled controllers to provide reliable electricity to 273 households in the Shalazile informal settlement.
Developed in response to the Usindiso fire, the system has reduced reliance on illegal and hazardous connections while delivering clean, stable power. Its strong performance and social impact have earned national recognition, positioning it as a viable model for replication across South Africa’s cities.
However, despite clear proof of concept, similar projects have not scaled at the pace many in the energy sector anticipated.
City Power has signalled its intention to expand microgrid deployment, with projects such as the Vukani Microgrid forming part of a broader push to improve resilience and expand access. Yet progress remains uneven, constrained by a mix of financial, technical and institutional barriers.
High upfront capital requirements continue to limit rollout. Microgrids require significant investment in generation, storage and control systems, often stretching municipal budgets already under pressure. While funding allocations from national government have increased, execution at local level remains inconsistent, slowing project pipelines.
Affordability also complicates the business case. In low income communities, limited ability to pay for electricity affects revenue certainty, making it difficult to structure bankable projects that can attract private sector participation or support rapid scaling.
Operational risks further weigh on deployment. Infrastructure in informal settlements is vulnerable to theft, vandalism and illegal connections, increasing both costs and complexity. In addition, challenging terrain and unclear land tenure conditions make permanent installations more difficult to plan and implement.
Governance constraints remain a critical factor. Many municipalities continue to rely on legacy systems and lack the technical capacity to deliver advanced energy projects at scale. Procurement delays, administrative processes and competing priorities such as maintaining ageing grid infrastructure all contribute to slow implementation timelines.
At the same time, a shortage of specialised skills in renewable energy and smart grid technologies is limiting the speed at which projects can be deployed and maintained, increasing reliance on external expertise.
Against this backdrop, political dynamics may become an unexpected catalyst for change. With local government elections approaching, pressure is mounting on the African National Congress led coalition in Johannesburg, which faces the prospect of losing ground amid voter dissatisfaction over service delivery.
Energy access and reliability have become central campaign issues, particularly in informal settlements where unsafe connections and outages remain widespread. In this context, visible and impactful projects such as Shalazile offer a compelling political lever.
Increased political competition could accelerate the rollout of microgrids and similar decentralised solutions, as parties seek to demonstrate tangible improvements in service delivery. Faster approvals, increased funding allocations and a stronger focus on implementation could follow in the lead up to elections.
The City of Johannesburg’s broader strategy, including efforts to reduce dependence on Eskom, aligns with this shift. Expanding microgrids in areas such as Alexandra, Vlakfontein and The View may now carry both operational and political urgency.
The Shalazile Microgrid has already proven that decentralised solar can deliver safe, reliable and cost effective power in complex urban environments. With election pressure building, the key question is whether political will can translate into the scale and speed required to replicate this success across the city.
Author: Bryan Groenendaal
