Cape Town’s Draft 2026/27 Energy Budget places energy security, infrastructure upgrades and affordability at the centre of the city’s long-term power strategy.
The City of Cape Town has committed more than R1.2 billion over the medium term to strengthen energy security and reduce reliance on Eskom.
The Draft 2026/27 Energy Budget outlines R71.3 billion in total capital and operational expenditure over the next three years, with major investment directed toward renewable energy procurement and upgrades to the Steenbras pumped hydro-electric power station.
According to the City, R659 million is planned for renewable energy procurement, while R586 million will go toward life-extension upgrades at the main plant of the Steenbras pumped storage power station.
Mayoral Committee Member for Energy, Alderman Xanthea Limberg, said the budget reflects the City’s move toward a more decentralised and sustainable energy future.
“This budget affirms our plans to secure Cape Town’s dynamic, decentralised energy future, as we lessen our reliance on Eskom and move toward cleaner and more sustainable energy sources,” said Limberg.
The City has also planned an additional R1 billion investment in streetlighting, including R165 million for LED streetlight installations across its network of more than 245 000 streetlights.
Limberg said streetlighting remains a key basic service, with the City aiming to maintain burn rates around its 90% target. However, illegal connections and theft continue to threaten infrastructure and leave some communities and motorists in the dark.
The City also said it is working to protect residents and businesses from sharp electricity tariff increases. Residents are expected to pay an average increase of 6.67% for electricity, which is below the 9.01% increase approved by Nersa for Eskom charges to municipalities.
