Electricity reform in South Africa: Implications and opportunities for municipalities

This study assesses how electricity reform impacts the municipal electricity business model, focusing on financial sustainability, operational readiness, socio-economic mandates, and long-term strategic positioning.

In South Africa, a typology-based scenario analysis shows that without targeted support, many municipalities, particularly smaller and under-resourced ones, risk falling behind. Progressive metros, however, are well-positioned to lead through IPP procurement, wheeling frameworks, and tariff reform.

Drawing on international studies from Chile, Germany, the Netherlands, Australia, India,
Mexico, and Guatemala, this study highlights the importance of delegated authority, structured national procurement, and community-owned energy models.