Cape Town will invest more than R6 billion in electricity infrastructure, strengthening energy security, expanding clean power and improving reliable, affordable supply for residents.
The City of Cape Town has committed more than R6 billion to electricity infrastructure over the next three years, positioning energy security as a central priority in its 2026/27 Budget while accelerating the transition to a cleaner, more reliable electricity network.
The investment forms part of the City’s record capital programme, with approximately 70 cents of every infrastructure rand allocated to essential assets including electricity, roads, water, sanitation, stormwater, transport and coastal infrastructure.
According to the City, the Energy Directorate’s investment will focus on strengthening the electricity grid, expanding clean energy procurement and preparing Cape Town for a decentralised energy future. The programme includes a R1 billion investment in streetlighting over the medium term.
The City says its strategy aims to improve service reliability while reducing long-term dependence on Eskom through greater investment in renewable energy and local infrastructure.
“All of our attention is fixed on expanding and improving access to our services and to bring down costs for customers,” said the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Despite Eskom’s municipal tariff increase of 9.01%, Cape Town says it has limited the average residential electricity tariff increase to 6.64%, helping reduce the financial impact on households while continuing to invest in infrastructure upgrades.
Key projects include R1.8 billion for energy-secure service delivery, including R656 million for renewable energy generation systems and R589 million for upgrades to the Steenbras Hydro Plant.
The budget also allocates R492 million for a ground-mounted solar photovoltaic project, R1.4 billion for city-wide transmission system developments, R261.5 million for street and public lighting, and R44.8 million to expand electrification in communities including Imizamo Yethu, Lavender Hill and Nomzamo.
Additional funding will support small-scale embedded generation, energy efficiency programmes and the replacement of ageing streetlights with energy-efficient LED technology.
The investment supports Cape Town’s 2050 Energy Strategy, which seeks to diversify electricity sources, strengthen resilience and build a cleaner, more sustainable energy future while improving affordability and reliability for residents.
