The Impact of Slow Uptake of Renewable Energy in South Africa with Emphasis on the Solar Energy Type Systems

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How to cite this thesis

Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date). THE IMPACT OF SLOW UPTAKE OF RENEWABLE ENERGY IN SOUTH AFRICA WITH EMPHASIS ON THE SOLAR ENERGY TYPE SYSTEMS

INNOCENT MDUDUZI MNCUBE

201495178

Submitted as a full Dissertation for the Degree

Masters in Engineering Electrical and Electronic

University of Johannesburg

Supervisor: Prof B Twala

2015

DECLARATION

By submitting this dissertation, I declare that the entirety of the work contained therein is my own, original work and that I have not previously in its entirety submitted it for obtaining any other qualification. I declare that all sources used or quoted, have been indicated and acknowledged by means of complete references, and that this dissertation was not submitted by any other person at any other university for a degree.

Signature: ………………………………………………

Name: ………………………………………………......

Date: ……………………………………………………

ACKNOWLEDGEMENTS

I would like to humbly highlight the following people that have made this dissertation possible:

 My wife Portia Tshidi Mncube for allowing me time to conduct this dissertation and encourage me, on the same note I also want to extend my sincere gratitude to my kids Nthabiseng, Khambule and Combela for giving me strength to strive to make our future better.

 My Supervisor Prof B. Twala for giving me direction and support on this project. At some stage I wanted to quit but he gave me strength and encouragement that I will be able to finish and even study further for Ph.D.

 Tshilidzi Thenga Director: Energy at Ekurhuleni Municipality, our conversations were casual but almost everything we discussed assisted me in greater detail in this dissertation and the material and information that I received from you. Thank you as well for allowing me to use Ekurhuleni as an example for this dissertation.

 My mother Mavis Mncube even though she may not know or understand what I am doing on this dissertation, I hold much higher respect for her in believing in education and taking us to school. She always say “education is your future”.

 My friend Mafika Thusi, I can say much more about you but thank you for giving me inspiration to study.

ABSTRACT

The dissertation examines the slow uptake of renewable energy in South Africa, especially solar type energy systems. It aims to identify and understand the issues and the unique dynamics involved in the local government (municipalities) since they are at the forefront of electricity distribution. The dissertation takes a qualitative research approach and a triangulation of data collection methods, combined with a relatively broad literature study to capture the complexity of the related issues. The contextual focus includes the macro-economic factors that contribute to the environment in which municipalities operate, developmental, economic, political and social aspects and the related experience of poverty, urbanization and unemployment. Furthermore, the dissertation attempts to show that a relationship exists between a slow uptake of renewable energy technologies, particularly solar energy and the loss of electricity sales revenue by municipalities in recent times.

Key findings indicate that the electricity sales revenue of municipalities is affected by the introduction of renewable energy technologies. This in turn causes reluctance in promoting such technologies from the decision makers at municipal level, because electricity distribution income is a key contributor to municipal revenue without which municipalities will not be able to meet their constitutional obligations. These findings are supported by the view of this dissertation when comparing electricity sales revenue of metropolitan municipalities over the past five years and also studying municipal legal framework. A variety of related theoretical work is chosen in this dissertation as a useful framework for analysis in order to approach issues of comparing the relationship between depleting municipal electricity sales revenue and the slow uptake of the renewable energy type system with a major focus on solar energy.

TABLE OF CONTENTS

1 CHAPTER ONE……………..………………………….…………...... 1

INTRODUCTION………………………………………………………………………………………………..1

MOTIVATION OF STUDY ...... 1

STRUCTURE OF THE REPORT ...... 2

PROBLEM STATEMENT ...... 4

RESEARCH OBJECTIVES ...... 4

2 CHAPTER TWO ...... 9

BACKGROUND REVIEW...... 9

2.1.1 Electricity Industry Background ...... 9

2.1.2 Legal Framework of Municipalities ...... 10

2.1.3 Free Basic Electricity ...... 11

2.1.4 Municipal Fiscal Framework ...... 15

2.1.5 Electricity Regulation and National Policy ...... 16

SOLAR ENERGY ...... 19

2.2.1 Solar Home Systems ...... 23

2.2.2 Solar Portable Lights ...... 23

2.2.3 Solar Bottle Bulb ...... 26

2.2.4 Solar Street Light ...... 27

2.2.5 Cooking ...... 28

2.2.6 Solar Box Cooker and Oven ...... 29

2.2.7 Water Heating ...... 29

3 CHAPTER THREE ...... 33

RESEARCH DESIGN AND METHODOLOGY ...... 33

3.1.1 Limitations and Assumptions ...... 34

3.1.2 Eligibility and Reliability...... 35

3.1.3 Ethical Issues ...... 36

STUDY METHODOLOGY ...... 37

3.2.1 Constitutional Mandate of National and Provincial Government ...... 38

3.2.2 City of Cape Town Electricity Sales Revenue ...... 38

3.2.3 Cross Subsidization across All Municipal Services ...... 41

3.2.4 Ethekwini Municipality Electricity Sales Revenue ...... 42

3.2.5 National Electrification Programme ...... 46

3.2.6 Inclining Block Tariffs (IBTs) ...... 47

3.2.7 Previous Studies ...... 49

iii

3.2.8 Hybrid Optimization Model for Electric Renewable (HOMER) Software Tool……………...... …………………………………………………49

4 CHAPTER FOUR ...... 52

CONCLUSIONS AND DISCUSSIONS ...... 52

5 REFERENCES ...... 59

6 ANNEXURE 1 ...... 71

ELUNDINI MUNICIPALITY ELECTRICITY ...... 71

GEOGRAPHIC AND DEMOGRAPHIC PROFILE ...... 72

POPULATION FIGURES ...... 72

RURAL vs URBAN POPULATION...... 73

AGE, GENDER AND RACIAL PROFILE ...... 73

UNEMPLOYMENT AND DEPENDENCY ON SOCIAL GRANTS ...... 73

ELECTRICITY ...... 74

ELECTRIFICATION ...... 74

PROJECTS ...... 74

REDUCTION OF ELECTRICITY DISTRIBUTION LOSSES ...... 75

NETWORK MINOR EXTENTIONS AND UPGRADES ...... 75

MAINTENANCE ...... 76

EQUITABLE SHARE PROJECTS FOR 2011/12 ...... 76

7 ANNEXURE 2 ...... 78

EKURHULENI METROPOLITAN MUNICIPALITY ...... 78

EKURHULENI’S LEGISLATION AND REGULATION ...... 80

EKURHULENI’S PAST ENERGY STATUS ...... 81

ENERGY INITIATIVES UNDERTAKEN BY EKURHULENI FROM 2006 - 2011 ...... 82

EKURHULENI METROPOLITAN MUNICIPALITY: SOLAR PV INSTALLATION ...... 83

8 ANNEXURE 3 ...... 86

PRIVATE SOLAR PLANT FEEDS INTO CAPE TOWN’S ELECTRICITY GRID ARTICLE.86

9 ANNEXURE 4 ...... 88

LETTER REQUESTING DATA COLLECTION BY MDUDUZI MNCUBE (S201495178)88

10 ANNEXURE 5 ...... 90

RESEARCH QUESTIONNAIRE ...... 90

11 ANNEXURE 6 ...... 91

LIST OF MUNICIPALITIES...... 91

11.1.1 Metropolitan Municipalities ...... 91

11.1.2 District Municipalities ...... 92

11.1.3 Local Municipalities ...... 97

LIST OF ACRONYMS AND ABBREVIATIONS

A: Amperes

ACSA: Airport Company South Africa c/kWh: Cents per kilo Watt hour

CO2: Carbon Dioxide

CoGTA: Department of Co-operative Governance and Traditional Affairs

COUE: Cost of Unserved Energy

CSP: Concentrated Solar Power

DC: Direct Current

DME: Department of Minerals and Energy

DNI: Direct Normal Irradiation

DoE: Department of Energy

DoRA: Division of Revenue Act

DSM: Demand Side Management

EE: Energy Efficiency

EIUG: Energy Intensive User Group

EMM: Ekurhuleni Metropolitan Municipality

ESI: Electricity Supply Industry

FBAE: Free Basic Alternative Energy

FBE: Free Basic Electricity

GHG: Green House Gases

GJ: Giga Joule

HTF: Heat Transfer Fluid

HVAC: Heating Ventilation Air-conditioning and Cooling

IBT: Inclining Block Tariff

IDP: Integrated Development Plan

IRP: Integrated Resource Plan kWh: Kilo Watts hour

LED: Light Emitting Diode

LGES Local Government Equitable Share Grant

LTMS: Long Term Mitigation Scenarios

MDGs Millennium Development Goals

MFMA: Municipal Finance Management Act

MtCO2e: Million tons of carbon dioxide equivalent

MW: Mega Watts

NER: National Electricity Regulator

NERSA: National Energy Regulator of South Africa

vii

NREL: National Renewable Energy Laboratory

Ph.D. Doctor of Philosophy

PV: Photovoltaic

R/kWh: Rand per kilo Watt Hour

RE: Renewable Energy

REFIT Renewable Energy Feed-In Tariff

SA: South Africa

SABS: South African Bureau of Standards

SALGA: South African Local Government Association

SASRAD: South African Solar Radiation Database

SEA: Sustainable Energy Africa

SHS: Solar Home Systems

SWH: Solar Water Heating

TV: Television

W: Watts

viii

LIST OF TABLES

Table 1: FBE split between Eskom and municipalities 2009 … ...... 14

Table 2: NERSA REFIT I, II and III allocations ...... 18

Table 3: SASRAD base stations site locations…………………………………...... 21

Table 4: City of Cape Town projected income from 2013/14 budget ...... 39

Table 5: City of Cape Town expenditure from 2013/14 budget ...... 40

Table 6: Cross subsidization within a municipality ...... 41

Table 7: Ethekwini municipality electricity sales revenue over the years ...... 42

Table 8: Ethekwini municipality energy sales per annum ...... 43

Table 9: Ethekwini municipality growth of bulk customers ...... 43

Table 10: Ethekwini municipality average energy sold per bulk customer in a month ...... 44

Table 11: Ethekwini municipality FBE ...... 44

Table 12: Ethekwini municipality No. of employees in the electricity department ...... 45

Table 13: Ethekwini municipality energy sold per employee in the electricity department .. 45

Table 14: Electrification levels across South African provinces ...... 46

Table 15: Elundini population growth as at 2011 ...... 72

Table 16: Elundini unemployment figures 2011 ...... 74

Table 17: Elundini Equitable share expenditure projects 2011/12 ...... 77

Table 18: Facts and figures of Ekurhuleni municipality ...... 79

LIST OF FIGURES

Figure 1: Maps derived from NREL data showing the average daily ...... 22

Figure 2: PV panels installation ...... 24

Figure 3: Solar portable lights ...... 25

Figure 4: Solar bottle bulb ...... 26

Figure 5: Solar street light ...... 27

Figure 6: Solar parabolic cooker ...... 28

Figure 7: Solar box cooker and oven ...... 29

Figure 8: Elundini municipal area ...... 71

Figure 9: Ekurhuleni municipality area ...... 78

Figure 10 Ekurhuleni solar PV plant ...... 84

Figure 11: Construction site at Ekurhuleni of solar PV plant ...... 85

Figure 12: City of Cape Town Black river park solar project ...... 86

1 CHAPTER ONE INTRODUCTION

This dissertation intends to investigate why there is a slow uptake of renewable energy in South Africa (SA) especially solar type energy systems. The dissertation focuses on the level of responsibility among the three spheres of government, i.e. national, provincial and local.

In terms of the current architecture of the local government fiscal framework, municipalities are expected to primarily rely on local revenue (property rates and service charges linked to their tradable services functions) in order to finance the performance of their constitutional mandate. Electricity distribution income and property rates are currently the key sources of local revenue for municipalities, water services and solid waste management services operated at break-even or deficit. Electricity distribution income is a key contributor to municipal revenue without which municipalities will not be able to meet their obligations.

Electricity sales revenue and municipal financial survival are closely linked in many South African municipalities, due to the particular history of municipalities operating as electricity distributors. Typically, 10% of annual electricity revenue generated is shared within a municipality, subsidizing a range of other important municipal services. In addition, revenue from ‘high-end’ users (larger residential and other consumers) is routinely used to cross subsidize ‘losses’ from providing electricity to poor households which are not fully covered by the national equitable share grant.

The threat of revenue loss linked to reduced sales from energy efficiency and solar water heating programs has often resulted in some resistance by electricity departments in such initiatives. However, today it is widely accepted that such changes are inevitable, even if just as a consumer response to higher electricity prices and increasing availability of cheaper alternatives (e.g. Solar PV), and a managed response is therefore called for.

MOTIVATION OF STUDY

The motivation for this dissertation is triggered by the lack of electricity, especially in rural areas. In 2013, I was visiting a place called Ezihlabeni in KwaZulu Natal closer to Melmoth where my father was born, it is a deep rural village where residents do not have basic supplies like water and electricity. During the night people still rely on wax candles for lighting and paraffin lamps. Since this is a rural village there are high numbers of unemployment and poverty is rife. Besides that the wax candles do not give enough brightness, but people still need to buy such means of lighting with the little money they may have which mostly come from social grants. So many questions came into my mind that even students are still using wax candles to study at night, whereas there are technologies like solar candles that could assist. This will not only give them enough luminance to see brighter at night, but will also save their money from buying wax candles.

Another puzzling question was that why the municipality (Ulundi municipality) does not have or utilize the Free Basic Alternative Energy (FBAE) which works like Free Basic Electricity in other municipalities. Even if the municipality were to declare every household indigent, the population in rural areas is smaller by numbers as compared to metropolitan cities.

Another motivation has been that throughout my work career, I have been somehow working around energy issues as a Professional Electrical Engineer. I started my career at the South African Bureau of Standards (SABS) as a test engineer than I moved to the National Energy Regulator of South Africa (NERSA) as Electricity Trading Specialist. I then zoomed in on specific energy issues at the Department of Public Enterprises as Director: Energy, and at South African Local Government Association (SALGA) where again I was an Electricity and Energy Specialist. During this span of my career, I gained in depth knowledge of energy issues, especially on electricity supply and demand, challenges faced by both Eskom and municipalities and how the government functions to respond and deal with energy issues. I have written articles and made presentations in conferences, local and abroad and participated in technical

2 standards that are related to electricity and energy. In doing all of this, I have been triggered by the question why South Africa, such a unique country with abundance of solar energy because of our weather patterns do not vigorously embark on promoting solar energy type systems, from the portable solar candles to roof PV or even at much bigger scales.

This dissertation will benefit all municipalities in the country to learn and understand the common concerns regarding the promotion of renewable energy within their area of jurisdiction. It will also trigger other researchers in this field to further this dissertation and look at other options or a route that municipalities can undertake in order to overcome such challenges. It is envisaged that the communities in municipalities will also benefit from this dissertation since the delivery of renewable energy type systems affect them directly. This dissertation will also unlock potential solutions to the current challenges faced by the country with shortages of electricity generation capacity. This also will alleviate stressed municipalities in areas where communities are embarking on the service delivery protests, especially those that do not electricity grid access. The dissertation will also be of benefit to meet and address the universal access of electricity for all in 2030 as part of the Millennium Development Goals (MDGs).

A SWOT analysis is a structured plan method used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a dissertation project, Wikipedia, the free encyclopaedia. The strength of this dissertation is the depth of knowledge from the people who were interviewed and participated. Weaknesses have been the limited data available to other municipalities in the country. Opportunities have been identified for other researchers to broaden this topic further by looking at a specific issue in each and every municipality. The threat is the political platform at which municipalities operate, such that, many, if not all decisions taken have some political influence.

It is my intention to further this dissertation to a Ph.D. level and broaden the scope to look at developing a tool kit that will assist municipalities with financial planning and structuring of electricity tariffs in order to waive potential electricity sales revenue

3 losses that are due to the uptake of solar type energy systems as well as optimizing cross subsidies within the range of services offered by a municipality.

STRUCTURE OF THE REPORT

The dissertation report is divided into four main chapters. The first chapter introduces the subject of the dissertation by highlighting the motivation behind it, design, methodology and orientation thereof. This chapter provides the angle at which this dissertation was approached in specifying the clear objectives.

The second chapter provides the background of the electricity distribution industry. It penetrates on the municipality’ side of electricity distribution and the state of overall energy issues in general in South Africa. It also looks at the policies and regulation around electricity distribution in municipalities. It only dwells on those policies and regulations that affect the promotion of renewable energy in the municipal environment and funding of municipalities. This chapter looks at different solar type systems available as an option for municipalities in the implementation of renewable energy technologies.

The third chapter explores the previous studies on this subject by comparing the results and conclusions in context with this dissertation in order to come up with credible and sound dissertation outcomes. This chapter is the crux of this dissertation, the discussions leading to the conclusions are discussed in this section.

The final chapter deals with the conclusions and recommendations and revisits the dissertation objections to assess if they have been addressed sufficiently and whether the problem statement has been answered.

PROBLEM STATEMENT

There is a slow uptake of solar energy type systems in South Africa when compared with other countries of similar energy demands, available technologies, infrastructure, economic growth and resources. In recent times, South Africa has been experiencing

4 electricity generation shortages which result in load shedding. This situation presents an opportunity to re-look at the technologies available for electricity generation mix and review long term planning in order to accommodate economic growth and universal access of electricity to all. This dissertation intends to investigate the impact of the slow uptake of renewable energy and specifically focusing on solar energy type systems. Why solar energy is not fully utilized to its potential in a country where the sun is in abundance because of the weather patterns and long summer months? Who is responsible to drive and promote issues of renewable energy among the three spheres of government, i.e. national, provincial and local?

National power shortages, together with fast rising electricity prices and the economic downturn of the past few years have changed the dynamics in the municipal electricity sector significantly. Among the key impacts, are the slowing or stagnation of electricity demand growth, greater focus on electricity efficiency amongst customers and an accelerated adoption of alternative generation technologies by end-users particularly solar PV. At the same time, maximum demand is not reduced, this is largely driven by low income households. Supply of electricity in this sector is costly and reducing peak demand would benefit electricity distribution business. The above trends pose challenges for municipal electricity distributors and on top of the agenda among all other these issues, is the impact on the revenue. Efficiency, small embedded generator installations and general reduction in demand due to its price elasticity, all tend to reduce electricity revenue. This is of great concern, since electricity revenue is often an important source of income for municipalities to enable cross subsidization of the poor and funding of other important municipal services.

It should be clearly understood that municipalities use electricity revenue collected from its customers to provide other services. In other municipalities it is even perceived as a “cash cow” because among all other services provided by municipalities, electricity has a highest collection rate even though there are illegal connections and non- payments but most people still pay their electricity bills. The introduction of pre-paid meters assisted hugely in the collection rate of electricity revenues in municipalities throughout the country. If such a revenue stream is affected by either technologies like

5 solar PV rooftops or even the solar water geysers, municipalities will struggle to perform their constitutional mandate of providing services to people. In other municipalities, service delivery protests that they face are somehow linked to the depreciation of the electricity revenue because of either energy efficiency measures or introduction of renewable energy technologies such as solar. In order to cushion the electricity revenue stream of the municipalities, perhaps a mechanism need to be derived to explore on, how can municipalities be allowed to scale up on renewable energy technologies and at the same time benefit financially from either the savings that would have been saved on the national grid or a tariff that would have been designed to cater for this. Eskom uses a term called “cost of unserved energy” which is used to pay big industrial companies when they are requested to shed load as and when required during times of electricity generation shortages. Can this not be a solution of municipalities for the units of electricity that they would have saved? The dissertation is investigating if the electricity sales revenue drops as a result of increased uptake levels of RE in the residential, commercial and industrial sectors, while there is an increased demand for subsidized low income electrification into the future, what will be the overall impact on the service delivery within a municipality, particularly to the poor?

The dissertation also looks at the need for renewable energy in South Africa and particularly solar energy type systems. Awareness on renewable energy development in South Africa was initiated in November 2003, when the South African government, introduced the White Paper on Renewable Energy. This White Paper on RE stated inter alia a 2013 target of 10 000 GWh to be generated annually from the renewable sources, namely biomass, wind, solar radiation and small scale hydropower. South Africa as one of the signatories of the Kyoto Protocol (February 2005) committed itself to reducing emissions by 34% in 2020 below projected emissions level. The emissions level from all sources in South Africa as a whole is currently estimated at about 500 000 000 tons of carbon dioxide equivalent (CO2e) per annum. If South Africa is to achieve its estimated targets, a decrease in emissions should be at least 0, 2% per annum. To provide a suitable enabling environment for emissions reduction and

6 reliable energy supply for the economy the Department of Energy (DoE) with the endorsement from the National Energy Regulator of SA (NERSA) introduced the Integrated Electricity Resource Plan (IRP) for South Africa 2010 – 2030. The IRP 2010 has been subjected to the public scrutiny and comments and eventually the whole process manifested in the Final Policy Adjusted IRP 2010: New-build Technology Mix. The DoE subsequently allocated different capacities across various renewable energy technologies from the total development capacity of 3 725 MW.

On the backdrop of the need of renewable technologies, neither the Energy Act nor IRP talks about small scale embedded renewable energy systems that are installed by customers on their own in order to reduce their electricity consumption or to go green as the choice. South Africa has traditionally had very cheap electricity, but this is now changing rapidly due to the upgrades in electricity production capacity and reticulation infrastructure which requires extensive capital expenditure. Eskom has also changed to borrowing directly as opposed to borrowing via government guarantee and this has necessitated them indicating a price increase of 14% per annum for the foreseeable future. Thus the more energy intensive a process is, the more marked the increase in energy costs and the higher the NPV of the project option.

RESEARCH OBJECTIVES

The main objective of this dissertation is to assess the impact of the slow uptake of renewable energy technologies in particular solar energy in South Africa.

The specific objectives are:

i. To investigate why some municipalities are very slow in promoting and providing solar technologies to their consumers?

ii. To investigate the level of responsibility among the three spheres of government,

7 iii. To assess whether municipal electricity sales revenues are affected by the scaling up of solar energy type systems by its consumers, iv. To investigate the legal framework that hampers municipalities in order to deliver solar energy type systems to its customers if they are any barriers, v. To investigate why rural municipalities do not provide solar type systems for basic use like lighting and possibly cell phone battery charging where there is still no grid connection, and vi. To investigate if it is possible that there could be an incentive scheme that will compensate the loss of electricity sales revenue with the introduction of solar energy types systems like a structured tariff or cost of unserved energy formula that is used for Energy Intensive User Group (EIUG).

2 CHAPTER TWO BACKGROUND REVIEW

There are three dimensions of the electricity challenges faced by South Africa (Department of Minerals and Energy, 2008):

 Electricity generation capacity: Installed capacity is insufficient to meet peak demands at all times.  Electricity supply: The consumption at any given time is more than generation capacity.  Reserve margin: The difference between capacity and demand is below the international norms (15%) to allow for routine maintenance or any system constrains at any given time. In some cases the reserve margin sits at 0% that is when load shedding occurs to avoid a total system collapse.

This dissertation focuses on the opportunity that presents itself where there is not enough electricity generation and explores other options that may exist to overcome the current challenges. In tacking this situation, it is important to look at the overall electricity industry in South Africa.

2.1.1 Electricity Industry Background

Electricity is currently supplied to end users in South Africa by Eskom and municipalities. Eskom supplies electricity to approximately 40% of consumers by number, which represents about 60% of sales by volume. The municipalities collectively sell to about 60% of consumers by number, amounting to about 40% of sales by volume. The municipal distribution sector is not homogeneous. It is characterized by a small number of very large distributors and a large number of very small distributors. The 12 largest municipalities account for about 75% of all electricity sales in the municipal sector. Municipalities have a constitutional and other legislative rights to supply electricity within their local boundaries. Eskom has legislative rights to supply throughout South Africa, where municipalities, or other licensees, are not

9 supplying. The electricity distribution industry is an important element of the economy, and has a key role to play in the government’s economic and social development plans. That is why this dissertation has a primary focus on municipalities because of the important role they play in the consumption of electricity, especially at the domestic level as well as driving behaviour, rules and guidelines using bylaws.

2.1.2 Legal Framework of Municipalities

The Local Government Municipal Systems Act, 2000 (Act 32 of 2000) Chapter 2, Legal Nature and Rights and Duties of Municipalities, establishes the right of municipal councils ‘to fund the affairs of the municipality by charging fees for services’.

Furthermore, Chapter 8, Municipal Services, Section 75A, provides the general power of the municipality to levy and recover fees, charges, and tariffs in respect of any municipal function or service provided. Chapter 8 goes on to provide specific information as to what is required from the municipality to give effect to executing such general powers and functions. The legal framework provides for municipal powers and functions that enable municipalities to charge for services rendered, to collect money due and to levy interest on outstanding amounts.

The Local Government Municipal Systems Act, sections 12 and 13, deals extensively with municipal legislative processes, particularly the passing and publishing of municipal bylaws in a provincial government gazette. The municipal bylaws are legally required to give effect to decisions taken by the municipal Council. The primary responsibility of a municipality is to deliver services; this is what the municipality’s “business” is about. Section 75A of the Municipal Systems Act allows municipalities to levy and recover fees, charges or tariffs in respect of municipal service delivery functions and to recover collection charges and interest on outstanding amounts. Furthermore, section 75 of the Act, makes it a necessity for municipalities to adopt bylaws to give effect to the implementation and enforcement of their tariff policies; in fact, all policies and supporting decisions taken by the municipal council must be supported by a bylaw to make it legally enforceable. Failure to comply with the

10 necessary by-law requirements may expose the municipality to litigation. Furthermore, Section 216 of the Constitution provides for the national government to transfer resources to municipalities in terms of the annual Division of Revenue Act (DoRA) to assist them in exercising their powers and performing their functions. These allocations are announced annually in the national budget. Transfers to municipalities from national government are supplemented with transfers from the provincial government. Furthermore, funding is also channelled from district municipalities to local municipalities. For the purposes of this dissertation an “equitable share” as a source of operating budget is being highlighted among all other funding mechanisms.

The equitable share is a formula driven allocation to municipalities and represents a local government’ share of nationally raised revenue. Equitable share allocations are intended to supplement municipal own revenue that is derived from trading services and property rates. While municipalities may use their equitable share allocation at their discretion, it is primarily intended to fund free basic services (Municipal Finance Management Act No. 56 of 2003). It is this grant that municipalities are able to provide Free Basic Electricity (FBE) to indigents on customers connected to the grid and other they provide Free Basic Alternative Energy (FBAE) which could come in the form of paraffin or solar energy type systems for non-grid customers or rural.

2.1.3 Free Basic Electricity

In terms of the Constitution, access to electricity is not a basic right. However, South Africa has set universal access as the goal of national electrification:

5. (1) The Minister must adopt measures that provide for the universal access to appropriate forms of energy or energy services for all the people of the Republic at affordable prices (National Energy Act 34 of 2008) ‘Basic electricity’, although not defined as such, is described in the Electricity Basic Services Support Tariff (Free Basic Electricity policy, 2003) as follows: “50kWh per month is considered adequate electrical energy to meet the needs for lighting, television and limited water heating and basic ironing (or basic cooking) for a poor household”. Free Basic Electricity (FBE)

11 is the amount of electricity deemed necessary to support basic energy services of a typical poor household as determined by the government from time to time. The FBE is funded through the equitable share (an equitable share is the unconditional grant allocated to municipalities to supplement their own revenue to deliver basic services to poor households) to the local government through the Department of Co-operative Governance and Traditional Affairs. It is at the municipalities’ discretion to determine the allocation for FBE as well as to draw up the indigent register.

According to the FBE policy, municipalities are required to provide 50kWh of FBE every month to indigents. However, each municipality, depending on its resources, implements FBE differently. Some municipalities fund the required 50kWh for all or selected customers while others may even provide 100kWh per month to all customers not limited to the indigent register. In certain circumstances due to funding constraints, some municipalities are only able to offer as low as 20kWh per month per customer (indigent).

Eskom began providing FBE services in 2003 to municipalities that were not able to provide electricity to their respective areas. Where municipalities have the capacity they provide FBE directly to their customers. Initially Eskom and the municipalities entered into one year contracts wherein Eskom provided indigent who qualify for FBE 50kWh per month. The municipality would provide Eskom with an indigent register of qualifying citizens, Eskom would then provide the service and invoice the municipality for that month. In 2006, Eskom changed the one year contracts for three years. Some of the municipalities had difficulty in adhering to these changes because they did not want to commit to longer terms. Subsequently the process was resolved between Eskom and those particular municipalities.

Eskom receives no reimbursement or funding for FBE through its tariffs, or directly from the equitable share. In the 2008/9 financial year, total cost of providing FBE within Eskom’s areas of supply was ± R310 million to 1.28 million customers that were configured to receive FBE. There was ± R275 million recovered from the municipalities through FBE agreements in 2008/9. The amount claimed for the free basic electricity

12 units does not cover full cost recovery for Eskom, which leads to a tariff differentiation cost. The National Energy Regulator of South Africa (NERSA) determines a c/kWh FBE tariff “claim” rate, which Eskom may claim for FBE from local government. In the past this rate was lower than the Eskom tariff and resulted in an under-recovery of cost for Eskom, e.g. Eskom tariff of 40 c/kWh and the “claim rate” of 35 c/kWh that results in a 5 c/kWh shortfall for every kWh. Recently NERSA has aligned this with the Home light 20A tariff, but there is still a shortfall for Home light 60A FBE customers, where the tariff is higher than the claim rate by 7.47 c/kWh.

Total Indigent Total Indigent Provinces (March 09) Households Households Eskom Municipality non-grid Total FBE (Census 2001) (Municipality data)

Eastern Cape 939 776 716 747 131 940 210 473 2 458 348 722

KwaZulu-Natal 1 162 490 218 745 111 072 132 362 34 268 277 702

Gauteng 967 539 233 420 364 069 435 995 0 800 064

Mpumalanga 444 112 178 779 107 205 108 205 4 100 219 510

Limpopo 744 676 522 598 184 648 109 639 21 928 316 215

North West 440 733 115 707 67 707 30 062 126 97 895

Free State 425 049 227 051 115 187 365 832 920 481 939

Northern Cape 118 194 86 499 43 339 45 344 300 88 983

Western Cape 290 213 201 832 162 459 433 039 0 595 498

Total 5 532 782 2 501 378 1 287 626 1 870 951 64 100 3 226 528 Table 1: FBE split between Eskom and municipalities 2009 source: researcher

From the Table 1 above, focusing on the non-grid customers, which mainly are rural and informal settlements, it shows that there is an opportunity to provide FBAE like solar type systems to these consumers for basic use. The dissertation focuses on why there is a slow uptake of such solar type systems, whereas municipalities receive the equitable share every year, even though it is not conditional, it is a huge opportunity to provide citizens with the basic means of lighting as basis for home users. In dealing with this question one also needs to look at the constitutional mandate on municipalities to charge for the services rendered. Municipalities make money by selling electricity, they are legally allowed to levy a surcharge in order to cross subsidize other services that they offer. If you cut or scale down on such an important revenue, this will have a direct impact on the way municipalities conduct their business.

2.1.4 Municipal Fiscal Framework

Eskom services key industrial customers as well as households and businesses in the medium and smaller size municipalities that are not licensed to be distributors. Smaller and medium size municipalities do not get any financial benefit in the areas of where Eskom is providing distribution services. The question which arises then is, if the electricity sales revenue drops as a result of increased uptake levels of RE in the residential, commercial and industrial sectors, while there is an increased demand for subsidized low income electrification into the future, what will the overall impact be on service delivery within a municipality, particularly to the poor? Furthermore, informal settlements are growing in South African cities, and there is increasing pressure for

15 local government to provide safe electricity to these communities at subsidized rates. In many municipalities electricity revenue goes towards subsidizing the poor or improving the quality of services to the municipality as a whole. The other revenue comes directly from the higher tariffs charged to the mid-high income residential, commercial and industrial customers.

2.1.5 Electricity Regulation and National Policy

South Africa is the largest contributor to the Green House Gases (GHG) emissions in Africa. According to the Long Term Mitigation Scenarios (LTMS), emissions were 415 million tons of carbon dioxide equivalent (MtCO2e) in 2000, placing South Africa as the 11th largest emitter globally. The country’s emissions per capita are about 10 tons of

CO2/person, the eighth highest in the world. The energy sector is the single largest source of carbon dioxide (CO2) emissions, accounting for more than 70 percent of the total CO2 emissions in the country. This is mainly because of South Africa’s heavy reliance on coal to meet its primary energy needs (75 percent of total energy consumption in 2004 was from coal, which is still the case today).

Studies have indicated that South Africa has a substantial renewable energy (RE) resource base, suggesting a significant potential role for RE in the country’s power supply. Against this backdrop, is the increasing reality of limited power generation capacity from conventional sources that is hampering the South African economy. A slowing of the economy has a direct bearing on municipal revenue through a reduction in rate payments and electricity charges, which in turn reduces municipal revenue. High electricity prices, coupled with slow economic growth can have a negative impact on rate-payer capability, resulting in late or non-payment occurring, or increases in illegal connections. In most countries the history of the development of the electricity supply industry (ESI), and its relationship to the political process, makes a long and complicated story. Electricity prices are inevitably pivotal in this regard, and South Africa is no exception. The electricity industry is currently regulated by the National Energy Regulator of South Africa (NERSA) with a mandate to perform certain regulatory functions. The 1998 Energy White Paper identified certain issues relating to

16 the structure of the electricity distribution industry, including the fragmented nature of the industry and the fact that many municipalities, particularly those in low-income areas owe large sums of money to Eskom. The South African Integrated Resource Plan 2010–2030 (IRP2010), approved and published in May 2011 and revised in 2013 by the Department of Energy (DoE), outlines the proposed power generation mix for South Africa. The IRP 2010 seeks to increase the overall contribution of new renewable energy generation to 17,800 MW by 2030 (42% of all new-build generation). On 02 July 2011, the Minister of Energy issued a Determination for the Independent Power Producers (IPP) procurement programme in accordance with section 34 (1) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (‘the Act’). According to NERSA the allocations for different types of Refit Phase 1, 2 and 3 are at the Table 2 which are only big scale Independent Power Producers that do not incorporate municipalities.

Technology Adjusted Capacity Capacity allocated Capacity Capacity Capacity for allocation in in the First Bid allocated in the allocated in allocation in

accordance with Submission Second Bid the Third Bid future Bid

the new Phase (MW) Submission Submission Submission

Determination (MW) Phase (MW) Phase (MW) Phases (MW)

Onshore wind 3 320 634.0 562.5 787 1 336.5

Solar photovoltaic 2 525 631.5 417.1 1 041.4

435

Concentrated solar 200 600 150.0 50.0 200 power

Small hydro (≤40MW) 135 0 14.3 0 120.7

Landfill gas 25 0 0 18 7

Biomass 60 0 0 16 44

Biogas 60 0 0 0 60

Small Projects 200 0 0 0 200

1 415.5 1 043.9 1 456 Total 6 725.0 3 009.6

Table 2: NERSA REFIT I, II and III allocations source: NERSA

SOLAR ENERGY

Global interest in harnessing renewable energy resources has dramatically increased due to the confluence of several factors. The world cannot continue to relay for long on fossil fuels for its energy requirements. Fossil fuels reserves are limited. In addition, when burnt, these add to global warming, air pollution and acid rain. These systems are non- polluting, don’t deplete the natural resources in the long run. The advantages of using solar energy are the cost reduction of installation in the case of non-availability of electric grid, reduction of electricity bill and contribution to the protection of the environments (clean and renewable energy source). The energy from the sun is supplied in the form of radiation. The energy is generated in the sun’s core through the fusion of hydrogen atoms into helium. Now due to the larger distance of sun from the earth only a small portion of sun’s radiation reaches earth’s surface.

The intensity of solar radiation reaching earth’s surface is around 1369 watts per square metre. This is known as the solar constant. The total solar radiation intercepted by earth’s surface can be calculated by multiplying solar constant with the cross section area of the earth. Solar energy can be used by man in a planned direct or indirect way. In the case of indirect utilization of solar energy we consider the use of renewable energies which are secondary effects of solar energy. Using solar energy in the direct way we can apply two fundamental methods of energy conversion:

• Photo thermal conversion of energy of solar radiation and

• Photoelectric conversion of energy of solar radiation.

South Africa is fortunate to be located at a latitude and in a climate that is generally well suited for the utilization of solar energy. Africa has been described as quite extensive, relative to other African nations (Bugaje, 2006). Surface meteorological measurements are carried out by several organizations, including the South African Weather Service and the Agricultural Research Council. At many sites, these automated measurements include readings of solar radiation, whose length of record varies from site to site. However, the accuracy of this data is also variable, as found by

Bekker (2007). Their approach to the matter was to apply a multiplier to measured data from one site, based on a 30-day running average of data in Eberhard (1990). In addition to apparent multiplier errors, directly measured data often contain periods of bad or missing data.

While some researchers have dealt with this problem by simulating irradiance based on other meteorological data (i.e. Maxwell, 1997), the required inputs for such models are not available at many sites. This database of information is provided by South African Solar Radiation Database (SASRAD) which has 20 base station locations throughout the country. Available measurements included average hourly global horizontal irradiance, dry bulb temperature, relative humidity, wind speed and direction, and precipitation. Table 3 below gives the location of the base stations SASRAD and when they started to record the solar information. Figure1 is used for illustration purposes in concluding that generally the whole of South Africa has enough solar radiation throughout the years and information confirming that is recorded on daily basis.

Site # Location Elevation Start of record (metres) (year) 30081 Bonfoil Stellenbosch, WC 292 1995

30086 Nietvoorbij Stellenbosch, WC 149 1995

30087 Ugie, EC 1537 1994

30090 Gullenberg, NC 1100 1994

30091 Nondweni, NP 1100 1994

30092 Zaaiplaas Middleburg, MP 1500 1994

30093 Pretoria Roodenplaat, GT 1229 1999

30106 Rusternburg, NW 1170 1997

30113 Hluhluwe, KN 95 1999

30142 Vaalhartz, NC 1169 1997

30144 Glen Bloemfontein. FS 1344 1999

30145 Misgund Joubertina, EC 737 1996

30149 Funeray, EC 999 1995

30160 Ukulinga, KN 775 1995

30173 Kakamas, NC 667 1996

30179 Rietrivier PP, NC 1140 1997

30180 Upington, NC 793 1996

30182 Klaasvoogds Roberston, WC 221 1996

30187 Vinkriver Roberston, WC 259 1996

30191 Bloukranz Prieska, NC 944 1996

Table 3: SASRAD base stations site locations source: SASRAD

Figure 1: Maps derived from NREL data showing the average daily source: NREL direct normal irradiation (DNI) for South Africa for the whole year

In this dissertation the main focus will be on smaller scale residential solar photovoltaic (PV) technology since these are at the forefront of the supply side where municipalities are concerned. Solar thermal electric or Concentrated Solar Power (CSP) technologies use the sun’s heat to drive either conventional steam turbine drive power plants. These technologies are used for generation of electricity and they are being compared with generating plants like the ones of Eskom. This dissertation will not focus on such technologies as they mainly on the generation of electricity.

2.2.1 Solar Home Systems

The most widely promoted category of solar technology for off-grid lighting use is the Solar Home System (SHS). SHSs have been used for decades, with millions of systems distributed in developing countries (Nieuwenhout, van Dijk et al. 2000). SHSs typically range from 20-100 Watts, and at the higher power levels can support other devices in addition to lights, such as TVs, radios, or mobile phone chargers. SHSs typically comprise one or more solar PV panels, a charge controller, a battery, and DC compatible fluorescent light bulbs.

Photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect as shown on Figure 2 below. The photovoltaic effect is the creation of voltage or electric current in a material upon exposure to light. Photovoltaic power generation employs solar panels composed of a number of solar cells containing a photovoltaic material. Materials presently used for photovoltaics include monocrystalline silicon, polycrystalline silicon, amorphous silicon, cadmium telluride, and copper indium gallium selenide/sulphide. Due to the growing demand for renewable energy sources, the manufacturing of solar cells and photovoltaic arrays has advanced considerably in recent years (Jacobson, 2009).

Figure 2: PV panels installation source: SEA

2.2.2 Solar Portable Lights

A growing number of smaller off-grid lighting products, sometimes referred to as “solar lanterns, “micro” solar lights, are currently entering the market as shown on Figure 3 below. These systems typically use less than 10 Watts of power and are self-contained products that emulate lanterns, torches (flashlights), or desk lamps in size and form. Compared to SHSs, solar portable lights are generally less robust, with lower service capacity, lower efficiencies, and shorter product life spans. However, the lower retail price of solar portable lights, around 10% of a SHS, makes them more accessible to a broader segment of unelectrified households.

Therefore, while less cost-efficient compared to the larger SHS or community-scale solar systems, solar portable lights can still offer significant cost, performance, and health benefits to the end user switching from fuel-based lighting. The device can be used for small-scale lighting applications in remote areas that are far away from the power grid. The system has a panel to collect the sun’s energy, a battery to store that energy and a light source to use the energy. The system operates like a bank account,

24 withdrawals from the battery to power the light source must be compensated for by commensurate deposits of energy from the solar panels.

There are many solar kits available on the market that offers a small portable solar panel and a battery for storing renewable solar energy. The solar energy is sufficient energy to supply 4 to 50 hours of light to a LED lamp on high and low settings respectively. The kit also provides cell phone chargers and adaptors that are suitable for most cell phone types.

Cost: R500 – R2000

Figure 3: Solar portable lights source: SEA

2.2.3 Solar Bottle Bulb

Solar Bottle Bulbs are an easy and effective lighting solution for low cost housing in pro-poor areas as shown on Figure 4 below. The name comes the concept from which it is made, of which is an empty 1.5 litre plastic bottle. The content of the bottle includes liquid bleach and purified water. The Solar Bottle Bulb can be used as an alternative electric powered light bulb placed within a rooftop that is exposed to sunlight on the outside. Although this intervention is only useful during daytime, its luminance is able to produce as much light as a 50W incandescent bulb.

Cost: minimal

Materials needed: plastic bottle, roof sheet material, purified water, chlorine and a rubber sealant.

Figure 4: Solar bottle bulb source: SEA

2.2.4 Solar Street Light

Solar Street lights work on the principle of the photovoltaic cell or solar cell which absorb energy from the sun during daylight as shown on Figure 5 below. The solar cell converts solar energy to electrical energy which is stored within a battery. The solar lamp draws the current from this battery and requires no other wiring or energy from alternative sources. Solar street lights are currently manufactured in South Africa.

Solar lighting can make use of three types of bulbs; sodium vapour, LED and induction technology lighting. Additional benefits of using solar street lighting, other than being low cost and making use of renewable energy sources, LED solar lighting is long lasting and can be used for approximately 20 years without replacement, uses a lower voltage to produce a brighter light and the thin-film solar panel is highly durable to high temperatures and hail stones.

Cost: varying on prices and dependent on quantity and type.

Figure 5: Solar street light source: SEA

2.2.5 Cooking

Parabolic cookers are energy efficient devices that require no other energy resources except solar energy as shown on Figure 6 below. A parabolic cooker is designed as a large spherical curvature dish that focuses sunrays inwards which heats the focus point, such as a pot of water or food. The parabolic cooker is able to cook food at the same rate as a conventional oven and boil a litre of water in 15 minutes. These cookers are considered to be a better alternative for outdoor cooking and camping as they require no firewood, gas or electricity.

Cost: R200 (small) – R2500 (large) Energy Saving: (Power output: 500 Watts (small) 2000 Watts (large)).

Figure 6: Solar parabolic cooker source: SEA

2.2.6 Solar Box Cooker and Oven

A solar box cooker (similar to the parabolic cooker principles) is a box with reflective lining material that absorbs and reflects the sun’s rays and directs it within the box which converts into heat energy as shown on Figure 7 below. This heat energy is then able to purify and boil water, cook and bake food and sterilize various instruments.

Box Cookers cook meals with performance varying between half as fast as conventional ovens to almost the same speed.

Cost: R3500

Figure 7: Solar box cooker and oven source: SEA

2.2.7 Water Heating

Solar water heating systems absorb solar radiation, which then transfers heat directly to an interior space or storage device and thus distributes the heat as shown on Figure 8. Solar water heating systems are the most commonly used household water heating

29 alternative. Solar water systems save households 40 - 60% of their energy bill paying themselves back within 3 years, South Africa is fortunate with abundant direct sunlight which makes it feasible to make use of the solar opportunities for free energy. Solar Water Systems are available in many designs and makes and are manufactured locally in South Africa. There are three main solar water systems available on the market, which are:

2.2.7.1 Thermosyphon SWH systems

The thermosyphon is a simple, efficient, reliable and low maintenance system in hot and moderate climates, often referred to as a passive heat exchange. The installation costs are minimal and requires no pumps or special control devices, however a controller can be used to monitor the water temperature and switch the element on at a pre-programmed time. A collector mounting system and an insulated storage tank are mounted on a roof (facing north in the southern hemisphere), the open pipe system allows hot water to rise through the top of the collector into the storage tank through the natural convection principal as shown on Figure 8 below.

Figure 8: Solar thermosyphon water geyser source: SEA

2.2.7.2 Split Pressurized SWH systems

The split pressurized SWH system is similar design and priciple to that of the thermosyphon system, the difference is that the collector and tank are seperated as shown on Figure 9 below. The storage tank can be located anywhere in the house and the existing geysors can be retrofitted to allow for solar water heating using a conversion kit.The roof mounted collector is located on a north facing roof allowing optimal radiation and absorbtion.

Figure 9: Split pressurized solar water heating system source: SEA

2.2.7.3 Indirect SWH systems

Indirect or closed systems do not heat the water directly rather they use fluid with a low-freezing point to absorb radiant energy from the sun. This system uses heat exchanger that separates the potable water from the fluid, known as the ‘heat-transfer fluid’ (HTF), that circulates through the collector. The two most common HTFs are water and an antifreeze/water mix that typically uses non-toxic propylene glycol as shown on Figure 10 below. After being heated in the panels, the HTF travels to the heat exchanger, where the heat is transferred to the potable water. This system is slightly more expensive the the other two, however indirect systems offer freeze and overheating protection.

Cost: Cost of each system is dependent on size, type and make of the solar heating system, therefore it is recommended that one should apply for a series of quotes with various suppliers, rebates from Eskom are available and should be considered as a saving option.

Energy Saving: Solar Water Systems save households 40 - 60% of their energy bill paying themselves back within a 3 year period.

Figure 10: Indirect solar water heating system source: Ekurhuleni municipality

3 CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY

Research methodology is seen by Miller (1979) as the planned sequence of the process involved in conducting research, given enormous variability in their different paradigms, operations and the interaction that takes place. Data collection for this study consisted of primary data in a form of questionnaires, past experiences, secondary data, sources from municipalities; interviews, observation and scientific insight.

According to research, design is the strategy adopted to approach a research problem, Leedy & Armod, 2001 McNeil (1990). Pretorius (2001) concurs by saying that design provides the overall structure for the procedure that the researcher follows, the data collected and analysed by the researcher. The design is a plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering methods, the instrument to be used, how the instruments will be administered, and how the information will be organized and analysed. This study uses qualitative research methods. There are figures analysed in this report of the municipal electricity sales revenue (quantitative) in order to draw comparable utterances on the level at which municipalities are affected by renewable technologies in general.

Qualitative research is a type of scientific research. In general terms, scientific research consists of an investigation that:

• seeks answers to a question;

• systematically uses a predefined set of procedures to answer the question;

• collects evidence;

• produces findings that were not determined in advance and

• produces findings that are applicable beyond the immediate boundaries of the study.

Qualitative concerned with a quality of information, attempt to gain an understanding of the underlying reasons and motivations for actions and establish how people interpret their experiences and the world around them. Qualitative methods provide insights into the setting of a problem, generating ideas and/or hypotheses (Stuart MacDonald & Nicola Headlam, CLES). In this study it is articulated that South Africa is facing electricity challenges and there is an opportunity to look at the current planning differently and also to utilize natural resources like sun in order to overcome the current challenges. The study looks at the current situation with municipalities, zooms into a problem statement, uses number of municipalities as examples, assesses the previously published material on the subject and draws conclusions and recommendations. In a qualitative research, research methods focus on gathering non- numeric information using focus groups, interviews and document analysis.Leedy & Armod (2001).

3.1.1 Limitations and Assumptions

Every study has a set of limitations (Leedy & Ormrod, 2005), or “potential weaknesses or problems with the study identified by the researcher” (Creswell, 2005, p. 198). A limitation is an uncontrollable threat to the internal validity of a study. As described in greater detail below, internal validity refers to the likelihood that the results of the study actually mean what the researcher indicates they mean. Explicitly stating the research limitations is vital in order to allow other researchers to replicate the study or expand on a study (Creswell, 2005). Additionally, by explicitly stating the limitations of the research, a researcher can help other researchers “judge to what extent the findings can or cannot be generalized to other people and situations” (Creswell, 2005, p. 198).

Essentially, there is no research study without a basic set of assumptions (Berg, 1998). According to Williams and Colomb (2003), identifying the assumptions behind a given research proposal is one of the hardest issues to address, especially for novice researchers. Moreover, assumptions can be viewed as something the researcher accepts as true without a concrete proof. In this research the following assumptions and limitations were identified:

34 a) The information on municipalities is general difficult to get, other will indicate that it is in their head or gone with the guys who went to retirement. b) Not all municipalities were sampled. c) Municipalities have different positions in their operational structures, some like Metros have a department or resources dedicated to energy issues whereas the smaller ones tend to have people that are generic in all areas. This affect the insight that each municipality will have on the issues related to this study. d) Data on internal energy consumption of municipalities in delivering services is not readily available. The reasons are varied: historically this has often simply not been measured or monitored, municipalities record data differently, making comparisons difficult. e) There has been limited research on the subject of this dissertation, previous studies have concentrated on the delivery of renewable energy and enabling policies in general. f) Huge challenges in getting the most recent data in municipalities.

3.1.2 Eligibility and Reliability

An instrument is valid if it measures what it is intended to measure and accurately achieves the purpose for which it was designed (Patten, 2004; Wallen & Fraenkel, 2001). Patten (2004) emphasizes that validity is a matter of degree and discussion should focus on how valid a test is, not whether it is valid or not. According to Patten (2004), no test instrument is perfectly valid. The researcher needs some kind of assurance that the instrument being used will result in accurate conclusions (Wallen & Fraenkel, 2001). This study focuses on the literature that has been gathered on municipalities, scientific research and interviews on subject matter experts. There are no experimental results that could be analysed and derive to a certain conclusion. The study relies on scientific analysis using qualitative research methods.

Validity involves the appropriateness, meaningfulness, and usefulness of inferences made by the researcher on the basis of the data collected (Wallen & Fraenkel, 2001). Validity can often be thought of as judgmental. According to Patten (2004), content

35 validity is determined by judgments on the appropriateness of the instrument’s content. Patten (2004) identifies three principles to improve content validity:

1) Use a broad sample of content rather than a narrow one: In this study even though not all municipalities were interviewed but institutions like NERSA, SALGA, SEA and DoE provided the needed insight and these organization work across all municipalities.

2) Emphasize important material: In this study the important material was identified and formally requested to the shortlisted parties that were strategically selected to participate in this research.

3) Write questions to measure the appropriate skill: As indicated as part of the limitations of this study, depending on the level of knowledge of the subject and the position held at that particular institution, people can give you different answers. Fortunate for this study the information gathered was relevant from reliable sources which gave this study a much broader view and enough information at its disposal.

3.1.3 Ethical Issues

Three core principles, originally articulated in The Belmont Report, 1 form the universally accepted basis for research ethics. 1 National Commission for the Protection of Human Subjects of

Biomedical and Behavioural Research. The Belmont Report. Ethical Principles and Guidelines for the Protection of Human Subjects of Research. Washington, DC: National Institutes of Health, 1979. Available: http://ohsr.od.nih.gov/guidelines/belmont.html. a) Respect for persons requires a commitment to ensuring the autonomy of research participants, and, where autonomy may be diminished, to protect people from exploitation of their vulnerability. The dignity of all research participants must be respected. Adherence to this principle ensures that people will not be used simply as a means to achieve research objectives. In this study the interviews were carried out with people mainly in the field of engineering and science and somehow involved with municipalities. There are no comments that link specific individuals that are drawn into conclusions. Most of the information was requested formally through right channels and most of it is available for public consumption.

36 b) Beneficence requires a commitment to minimizing the risks associated with research, including psychological and social risks, and maximizing the benefits that accrue to research participants. Researchers must articulate specific ways this will be achieved. This study looks at the municipalities and public information. As opposed in cases where one looks at the behaviour of certain human beings or population groups where care needs to be taken into consideration in articulating some of the findings as well as looking at not embarrassing or make comments that maybe harmful to society. c) Justice requires a commitment to ensuring a fair distribution of the risks and benefits resulting from research. Those who take on the burdens of research participation should share in the benefits of the knowledge gained. Or, to put it another way, the people who are expected to benefit from the knowledge should be the ones who are asked to participate. In this study the interviews were carried out with people mainly in the field of engineering and science and somehow involved with municipalities. Questionnaires were sent to relevant institutions and

to people with authority to respond.

STUDY METHODOLOGY

There have been many studies on the promotion and access to renewable energy in South Africa and throughout the world. The attention to the human factor in order to implement all these good policies and strategies has been somehow overlooked, especially in municipalities where they operate within the confined financial environment with a range of competing services that need to be provided. Most people that you can come across they will agree that South Africa no matter where you are, there is a fair amount of sun throughout the year. The weather patterns especially in provinces that are upper North and East, the day temperature can rise to above 40 degrees Celsius on hot summer days and generally hot even on winter months. If the temperatures were anything to go buy, solar energy type systems should be an obvious choice for basic needs like cooking, lighting and water heating. In most municipalities this is not the case, there are still communities in rural and informal urban settlements

37 where there is no electricity grid and those communities do not have access to solar energy type systems for basic services.

3.2.1 Constitutional Mandate of National and Provincial Government

Section 154(1) of the Constitution of South Africa (1996) tasks both national and provincial government with supporting and strengthening the capacity of municipalities to manage their own affairs, exercise their powers and perform their functions. In this case the national government has a duty and responsibility for clarification of the energy responsibility at the local level as vital first step towards local energy development. This needs to be coordinated by institutions like SALGA, and led by the Departments of Energy and Cooperative Governance. Once clarified, this needs to be institutionalized.

The provincial government level is also very crucial in the renewable energy promotion in the way that it can guide all district and local municipalities. If there are guidelines or by laws that are adopted at this level, all municipalities belonging into that particular district or province will be obliged to comply. Such guidelines or by laws would have to be adopted by all municipalities and will also assist in sharing learning experiences and challenges. This will also speed up the dissemination of information from the central commanding point. The Eastern Cape Province is busy trying to publish a best practice registry and a database of renewable energy and sustainable projects in all municipalities belonging to the province. It is such initiatives and authority that the provincial government level should command.

3.2.2 City of Cape Town Electricity Sales Revenue

In order to understand the impact of losing electricity sales revenue, City of Cape Town budget was analysed. City of Cape Town’s budget is used for illustration purposes and it is a public information and hence it was not formally requested. The other illustrative figures were obtained from the report on financial impact of EE and RE on service delivery to the poor, by SEA August 2013.

Currently, the majority of local government income is derived from

1. Grants from the National fiscus via National Treasury (typically 10%). This includes: a. Local Government Equitable Share Grant (LGES) – for free basic services b. Housing grants c. Health grants

2. The rates account, paid by property owners (typically 20%)

3. Services - electricity, water, sewerage and refuse removal (typically 55%)

Together this typically accounts for 85% of local government income. Below is a table of projected in income for the City of Cape Town for 2013/14.

City of Cape Town Projected Income from 2013/14 budget

Income Source R billion % of budget Grant income 2.6 10% Rates 5.5 21% Electricity 9.7 37% Water 2.3 9% Sewerage 1.2 5% Refuse 0.9 3% Other 3.8 15% Total income 26 100%

Table 4: City of Cape Town projected income from 2013/14 budget

This table 4 above shows electricity to be the largest income generator for local government. However, one needs to examine typical local government expenditure to see the whole picture:

City of Cape Town Projected Expenditure from 2013/14 budget

Income Source R billion % of budget Staff costs 8.4 32% Depreciation 1.9 7% Bulk purchases 6.9 27% Contracted services 3.2 12% Other 5.6 22% Total income 26 100%

Table 5: City of Cape Town expenditure from 2013/14 budget

The table 5 above Bulk purchases (mostly for electricity and water) account for 27% of expenditure. Of this electricity would typically be 85% and water 15% (60% of revenue is typically paid on for bulk purchase). This means that electricity would provide a net surplus of: 37% (total income) – 21.6% (bulk purchases = 15.4% to the city budget.

Much of this is required to keep the electricity business operational. However, electricity regulations currently allow an electricity transfer of 10% of overall income into the rates account to cross subsidize other City functions. This amounts to 3.7% of the overall city budget that electricity currently cross subsidises. This leaves the operational component at approximately 11.7% of overall city budget. The money moving over to the rates account from electricity is not allocated specifically, and can be used at the discretion of the administration. This on its own shows that a municipality can hardly survive if it was to lose the electricity sales revenue or to be decreased over the years because of less consumption by customers where they have installed their own renewable energy systems like solar PVs. In rural municipalities it is even worse because they do not have a property rates revenue. They rely heavily of electricity and other sources of funding in order to cross subsidize other services.

3.2.3 Cross Subsidization across All Municipal Services

Municipalities are in an increasingly difficult position where they need to find the resources to cross-subsidize poor households, and this pressure is increasing as informal electrification becomes more of an obligation, yet electricity revenue is under strain as bulk prices (Eskom) increase and important surplus generating high-end customers look for ways of spending less. Municipalities are under fast increasing revenue stress from these two sides If attempts are made to alleviate this pressure and sustain adequate revenue by further loading the tariff to wealthier residential and other customers (who currently are the key surplus income generators), this just accelerates their adoption of solar PV and efficiency options to reduce their electricity expenditure, which further reduces a municipality revenue. The graphical representation on Table 6 below shows the cross subsidization that takes place among the three different electricity customers as seen by municipalities:

Table 6: Cross subsidization within a municipality

3.2.4 Ethekwini Municipality Electricity Sales Revenue

In another similar environment of eThekwini electricity, similar patterns are showing that the number of customer connection is increasing as the economic activities increase. The graph on Table 7 below clearly shows that the sales of energy are on a downward trend.

Table 7: Ethekwini municipality electricity sales revenue over the years

Maximum Demand is the power consumed over a predetermined period of time, which is usually between 8 to 30 minutes on daily basis 365 days a year. Maximum demand will be highest value recorded the whole year. In the case of eThekwini electricity the percentage growth is coming down which could include a lot of factors, and according to the interviews with the employees in various technical departments renewable energy particular solar energy systems have had an effect in the recent years. The graph above depicts such effects.

The graphical representation on Table 8 below shows and interesting scenario, over the recent years the percentage growth in electricity sales volume is decreasing. This highlights the discussion of this study that there is an impact caused by renewable energy and other measures like energy efficiency that directly affect the municipal finance which is a major contribution in the whole municipality.

Table 8: Ethekwini municipality energy sales per annum

The graphs below (Table 9 and 10) show that the number of business connection is increasing as expected in a growing economy country. The percentages of electricity sales volumes are shrinking over the years. In terms of the Rand value, the municipality is making up by raising tariffs which show that the percentage is increasing.

Table 9: Ethekwini municipality growth of bulk customers

Table 10: Ethekwini municipality average energy sold per bulk customer in a month

Free Basic Electricity volumes are increasing and from the graph on Table 11 below, it shows that there are many qualifying indigents but the resources are not enough to cover every needy household.

Table 11: Ethekwini municipality FBE

The indices shown on the graphs below (Table 12 and 13) are an indication that when there is growth in the number of customers in any particular municipality, its resources need to follow that path. In this case it clearly shows that the energy sold per employee is coming down heavily, which is directly linked to the electricity sales volumes.

Table 12: Ethekwini municipality No. of employees in the electricity department

Table 13: Ethekwini municipality energy sold per employee in the electricity department

3.2.5 National Electrification Programme

The national electrification drive to support poverty alleviation has reached almost all urban, and the vast majority of rural, formal houses and electrification is being extended into informal settlements by some municipal distributors. However, a proportion of rural households and informal settlements still do not have access to electricity because of distributor grid limitations or because settlements are located on land which precludes electrification, such as private land, power line reserves or swampland. The provinces of the Eastern Cape and KwaZulu- Natal have particularly low rates. The two highlighted provinces have huge numbers in term of electricity connection backlog. The graphical representation on Table 14 below shows the percentage of households per province that have electricity. The information may have some degree of inaccuracy because of huge migration of population, especially from rural areas to urban informal settlements.

Table 14: Electrification levels across South African provinces source: STATSSA

A steady urbanization rate of about (1.2% p.a.) has led to a growth in informal housing as the national housing programme has not been able to keep up with the demand. Currently around 13.6% of South Africa’s population are presumed to be living in urban informal housing. National or local government support services reach a few of these people, and even though informal settlement electrification is gaining ground in the

46 country, this group remains amongst the most marginalized. Technologies like solar type systems can alleviate such challenges because they do not depend on the location, it is easy to move around with them especially the portable solar lighting systems. As explained in earlier arguments, it does not matter where people migrate to, because the weather pattern in South Africa is almost the same everywhere. This will mean that even if someone is moving to a “shack” somewhere in the country they may have at least lighting and some form of a portable solar system that can offer the cell phone charger which has become a basic for a human being in nowadays.

Roll out of the national electricity/energy subsidy is not reaching all indigent households. Some municipalities use an indigent register, but the indications are that not all poor households are registered; households may also be receiving their electricity through an informal or illegal connections, and are thus excluded from the subsidy (for example, although some 90% of households in eThekwini are using electricity for lighting, the StatsSA proxy for electrification, the number of FBE grant claims represents only 37% of ‘extreme indigent’ households and a mere 13% of all poor households). Subsidy ‘slippage’ occurs in municipalities that provide the FBE to all households below a set consumption level, wealthy households with low consumption levels receive the subsidy intended for the poor, while poor households with many occupants, or servicing multiple houses on a single connection, will consume above the subsidy allocation level. The rich customers whom may have multiple residences will show less consumption and by default fall under indigent.

3.2.6 Inclining Block Tariffs (IBTs)

The introduction of the inclining block tariff (IBTs) is a sound principle and is supported by all municipalities, in practice the situation is more complicated, as customers often rent to backyard shacks or adjoining informal houses, pushing their consumption up into the more expensive tariff brackets. There are also safety concerns with such informal wiring extensions. In addition, they often appear at a very high rate as a means of income generation, and the backyard shacks and adjoining informal households therefore receive no benefit from the subsidized tariff. Some municipalities are now

47 providing meters for backyard shacks, but the situation is likely to persist until a formal electricity supply is available to all households. Other municipalities are still implementing a one meter per stand policy. To illustrate this IBTs on indigent, assume an old granny receiving a pension or a grant from national government. She has 10 backrooms that are rented out at R700 each per month. Her monthly income increases to R7 000 a month, which far supersedes the R2, 300 set as a threshold for indigents. This particular person qualifies to be indigent by virtue of receiving a grant or pension and because she has 10 more occupants in her house the electricity consumption levels will increase which will allocate her in the next expensive tariff. The same can be true that those 10 occupants are family members who are employed and such a family should receive FBE and because of the high consumption by adding 10 occupants the tariff will be escalated to the next expensive level.

Electrification has seen a significant decline in the consumption of hazardous household fuels, such as paraffin and candles. However, the use of such fuels still persists and subjects the very poor to ill health and fire, which has devastating consequences, destroying not just houses, but entire asset bases of the poor. The only threat is the illegal connection to urban informal settlements, these are very dangerous to especially children since the wires or connections that are used are either not insulated or earthed. FBAE is also intended for implementation by municipalities, although the capacity and resources to implement FBAE must be sourced from within the municipality and the existing equitable share. In most municipalities FBAE is not implemented because of the shortages in funding through equitable share grants. Since that equitable share grant is a non-conditional grant it is almost impossible to hold municipalities to account those that do not offer FBAE to communities that do not have electricity grid access. FBAE is the primary source of funding through an equitable share grant in municipalities that have households not connected to grid electricity.

3.2.7 Previous Studies

1) The Financial and Fiscal Commission has undertaken studies which identify the critical need for municipal revenue allocations to ensure adequate network maintenance and expansion. (Sustaining Local Government Finances, 2013. Financial and Fiscal Commission). This dissertation looked at the sufficiency of revenue received by municipalities in order to adequately maintain their network infrastructure. Again, it did not look at the human side of issues where a person in charge at the municipality needs to make a decision on whether to allow the electricity sales revenue to deplete or perhaps hold on by not promoting renewable energy technologies.

2) Sustainable Energy Africa has undertaken assessments of the impact of energy efficiency and small scale embedded generation of municipal revenue (2014). This study is more relevant to this dissertation, it starts to ring alarm bells to the municipalities about losses in the electricity sales revenues. It falls short in looking at the human side of municipal personnel. Municipalities are not automated machines, that when you press a button everything will fall into its spaces. Unless there is a clear directive or incentive for municipalities, issues of renewable energy will be always be secondary especially if it affects their expenditure budget.

3) The National Climate Change Response White Paper (2011) identifies local government as an important partner in meeting national mitigation and adaptation targets (Section 10.2.6) flowing from their responsibilities as detailed in the objectives and powers and functions accorded to local government in the Constitution of South Africa (108 of 1996) and the Municipal Systems (32 of 2000) and Structures (117 of 1998) Acts. These climate response responsibilities include energy efficiency at the local level, and renewable energy development. SALGA is specifically identified here as a key support in enabling local government to realize the national climate response. Again in this dissertation such people that need to drive such strategies are not employed in many smaller municipalities. It is only in

recent times that Metros have allocated a senior position for someone qualified to be dedicated to issues of climate change and renewable energy. It is recommended that an institution like Municipal Infrastructure Support Agent (MISA) can be in a better position to have the resources to drive the issues of renewable energy in smaller and cash strapped municipalities where such positions are not funded or they cannot attract appropriate skills in that area.

3.2.8 Hybrid Optimization Model for Electric Renewable (HOMER) Software Tool

As a matter of interest in comparing the how much would the residences pay if they install their own residential PV system against the tariff currently charged by a municipality. A trial 14 day version of the HOMER computer modelling tool was used to simulate the economic analyses of small scale solar PV power generation system aimed to supply middle income residential customers. This is because residential solar photovoltaic power generation systems are becoming increasingly popular nowadays in South Africa with more and more customers now installing photovoltaic (PV) systems in order to power their homes, and are also keen to have residential solar PV systems with battery backup installed in their homes in addition to the solar heaters to achieve energy saving, as well as energy security through partial independence from grid electricity especially for those days of load shedding. Using the information obtained from eThekwini municipality and City of Cape Town, the system designs components such as photovoltaic (PV) array, the battery bank, converter, and AC load are considered, and component specifications (size, capital costs, replacement costs, etc.) are included and specified in HOMER to generate the PV system model. This model will differ from each municipality to another. The system looks at capital, and annual operation and maintenance costs. The cost of energy is the primary input and this unit is different in each municipality since the electricity tariffs are also different.

The results are inconclusive, since the output comparison is highly dependent on the type of PV panel you choose, tariff, load profile, installation costs, etc. but in all simulations, customers break even in less than 24 months, meaning from there on they

50 will not pay anything for the period of that PV installation typically between (15-20) years. This model is exploring the ideal case of a customer that is completely off grid. These are such systems that municipalities should be advocating, but at the same time as shown in the simulations, there will be less consumption which will lead to loss of electricity revenue for municipalities.

Although photovoltaic systems are expensive in general, solar technology is developing at a steady rate and photovoltaic systems are becoming more widespread, therefore there will be significant decreases in the cost of photovoltaic arrays in the years to come. Photovoltaic (PV) system is a very important and emerging technology in the future of power generation worldwide. The system studied throughout this work relies only on one source of energy which is the energy harnessed from the sun through a PV array. The rest of the time when there is no sunshine or insufficient energy is produced, the system relies entirely on the supply from the battery bank. A cost offset of the PV panels could be the economies of scale in that particular municipality or area if such technologies are promoted and possibly implemented by municipalities for quality and consistency as well as keeping records of installations for measurement and verification.

4 CHAPTER FOUR CONCLUSIONS AND DISCUSSIONS

Various conclusions are drawn from the findings of this dissertation. Since the investigation is the impact slow uptake of renewable energy in South Africa with emphasis on solar energy type systems, the findings proved that the impact is negative. Even though they were limitations highlighted on this dissertation which include:

i. The availability of data from municipalities, ii. Depending on the level of an official of a municipality you get different answers from the same questions; iii. There have been limited studies in the past that have looked at this specific dissertation, many researchers have looked at the delivery of renewable energy in general; iv. Municipalities operate differently and the administrative structural set up differs by each municipality; v. Municipalities have different immediate needs, political interference and other strategic projects tend to drive the needs of that particular municipality; and vi. The level of education and exposure to the subject of renewable energy within the personnel of municipality tends to drive the municipal financial planning and associated objectives.

The specific objectives that were explored and addressed are:

1) To investigate why some municipalities are very slow in promoting and providing solar technologies to their consumers?

All municipalities agree that there is a need for implementation of renewable energy in their area of jurisdiction, however, there is a huge concern that the promotion and the implementation of renewable energy especially solar type systems like home PV will reduce electricity sales revenue. This reduction will have a significant

impact on the municipal revenue since electricity sales form a huge chunk of the municipal budget, which without it many municipalities may not be able to offer other municipal services and cross subsidization of the poor. The dissertation proved that, this was evident when examining financial reports of the municipalities, that there are new customers that are being connected over the years, but the consumption is coming down except in areas where there are illegal connections. In the Cape Town municipality in particular, it shows that bulk purchases (mostly for electricity and water) account for 27% of expenditure. Of this electricity would typically be 85% and water 15% (60% of revenue is typically paid on for bulk purchase). This means that electricity would provide a net surplus of 37% (total income), 21.6% (bulk purchases = 15.4% to the city budget. The level of subsidy of municipalities in the form of equitable share is not enough yet municipalities are in an increasingly difficult position where they need to find the resources to cross- subsidize poor households, and this pressure is increasing as informal electrification becomes more of an obligation, yet electricity revenue is under strain as bulk prices (Eskom) increase and important surplus generating high-end customers look for ways of spending less.

2) To investigate the level of responsibility among the three levels of Government.

Renewable energy is not a mandate on local government per se, but may be brought into local government policy and operation through the pursuit of local economic development, environmental and sustainability concerns and the built environment. National government’s renewable energy programme may also impact on local government as it takes place in local areas, and increasingly may even be ‘embedded’ within the distribution network of local governments. The dissertation concluded on this by carefully extracting all legislation around local government and funding mechanisms. Clarification of the energy responsibility at the local level is a vital first step towards local energy development. This needs to be coordinated by institutions like SALGA, and led by the Departments of Energy and Cooperative Governance as a policy department. Once clarified, this needs to be institutionalized. This conclusion is derived at by examining different

municipalities on how they address and perceive renewable energy in general. In other municipalities like metros, there are resources allocated for renewable energy and climate change. In smaller municipalities a topic of renewable energy is not even part of municipal planning on the IDPs. It is therefore concluded that there is no clear cut across all municipalities in terms of the mandate of renewable energy.

The provincial government level is also very crucial in the renewable energy promotion in the way that it can guide all districts and local municipalities in the province. If there are guidelines or by laws that are adopted at this level, all districts and local municipalities will be obliged to comply. The provincial government serves as a conduit between national government and municipalities. Such guidelines or bylaws would have been adopted by all represented municipalities and will also assist in sharing learning experiences and challenges. This will also speed up the dissemination of information from the central commanding point. The dissertation found examined all provinces and concluded that, Gauteng province is a good example by introducing a Gauteng green agenda will encompasses all municipalities in the province, concerned parties and related stakeholders in tackling renewable energy and climate change issues driven by the provincial government.

3) To assess whether municipal electricity sales revenues are affected by the scaling up of solar energy type systems by its consumers.

Two of the larger metros, for which data has been analysed, have seen an approximately 10% reduction in energy consumption amongst mid-high income households post the 2008 price increases. Total electricity sales in these municipalities have begun to flatten out/decline as a result of renewable energy measures and energy efficiency. If the electricity sales revenue decline that poses a concern to the viability of municipal finance since electricity revenue is often an important source of income for municipalities to enable cross subsidization of the poor and funding of other important municipal services. For the first time in 2012/3, electricity usage in the country dropped, and several Metro electricity departments

have reported a drop in electricity sales over the last 1 to 4 years. Even though the illegal connection exists in municipalities, electricity has a highest collection rate when compared with other services within a municipality. That is why it is easier for a municipality to use the electricity sales revenue to cross subsidize other municipal services. The dissertation supported the view that indeed there are losses of electricity sales revenue that is incurred by municipalities with the introduction of renewable energy technologies. This was achieved by the evidence of financial data from the municipalities, where financial reports of recent years not longer than 5 years were analysed in order to draw a pattern of comparable information, to establish trends to support the loss of electricity revenue by either introduction of renewable energy or other energy efficiency measures.

4) To investigate the legal framework that hampers municipalities in order to deliver solar energy type systems to its customers if they are barriers.

There is no legal framework that prevents municipalities to implement renewable energy. In the context of this dissertation, customers can choose anytime on what technology to deploy at their homes in order to reduce consumption which will lead in paying less for electricity. Customers are in contrast with the municipalities they would want to pay less at all costs as and when there is an opportunity to do so. The Municipal Systems Act (MSA) allows a municipality to enter into a service delivery agreement for the provision of a municipal service in its area. Service delivery agreements may be entered into with the following external service providers:

a) a municipal entity; b) another municipality; c) an organ of state (including a water services committee established in terms of the Water Services Act 1997, Act 108 of 1997; a licensed service provider registered or recognized in terms of national legislation and a traditional authority);

d) a community based organization or other nongovernmental organization legally competent to enter into such an agreement; or e) any other institution, entity or person legally competent to operate a business activity.

In all such instances, service delivery agreements are prepared and serve as contracts between a municipality and a service provider. Section 81 of the MSA defines the responsibilities of the municipality when providing a service through a service delivery agreement with an external mechanism. This is highlighted in the context of mitigating the shortage of skills and resources as an option to optimize on service delivery. Through this Act, municipalities are allowed to appoint service providers that have been appointed by other municipalities that have rendered a good service. The Electricity Regulation Act allows municipalities for cross subsidization of electricity sales revenue to other municipal services.

5) To investigate why rural municipalities do not provide solar type systems for lighting and possibly charging their batteries where there is still no Grid connection.

There could be a huge social contribution impact where municipalities can on their own provide solar type systems as part of FBAE though the equitable share grant. Rural municipalities lack skills and people who are qualified in the field of renewable energy. Renewable energy is a technical subject which the knowledge and the understanding of it should not be underestimated. It is with shock that other municipalities do offer portable solar systems for lighting and cell phone charging at the monthly installation fee of R65 per household. This was discovered at Elundini local municipality in the Eastern Cape in the area called Tsitsana. This is a deep rural area with high levels of poverty and unemployment and communities survive on grants. This municipality does not offer FBE and from the annual report of 2011/2 it shows the all amount of the equitable share grant was committed in building new municipal offices. In the case of customers that are not yet connected to the grid, municipalities do not benefit anything since there is no pool of revenue from electricity sales. These solar energy type systems are seen as a deterrent in

growing the municipal electricity sales revenue base. Municipalities want to protect revenue from electricity sales.

6) To investigate if it is possible that there could be an incentive scheme that will compensate the loss of electricity sales revenue with the introduction of solar energy types systems like the cost of unserved energy formula that is used for Energy Intensive User Group (EIUG).

There are few options available in order to compensate the loss of electricity sales revenue only the following have been explored for the purposes of this dissertation:

a. Reducing cross subsidy to the poor to balance the sales volume losses which will have a devastated social impact on the service delivery. b. Increase tariffs to the middle and high income electricity users. c. Increase tariffs to the bulk customers. d. Separate funding or grant from national government that will reverse the adverse effects of loss of electricity sales revenue that will be applied as a surcharge to cross subsidize other municipal services.

The cost of unserved energy may not work in municipalities since this is a short term measure employed by Eskom in unforeseen electricity generation shortages. There could also be shortcomings of using a formula based incentive scheme like COUE because the solar energy types systems cannot be accurately quantified in terms of total energy capacity that they will take off from the grid. It is by common knowledge that some households may have such technologies, but may probably not use them at all times or when required, which will pose serious challenges from the municipal perspective, if (a municipality) decided to drop the notified maximum demand from Eskom.

PROPOSED FUTURE STUDY

It is recommended that the scope of this dissertation be further explored at a Ph.D. level to broaden the scope which will include specific municipalities that are struggling in the area of renewable energy especially those in rural areas. The scope should look at developing a tool kit that will assist municipalities with financial planning and structuring of electricity tariffs in order to waive potential electricity sales revenue losses that are due to the uptake of solar type energy systems as well as optimizing cross subsidies within the range of services offered by a municipality.

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6 ANNEXURE 1 ELUNDINI MUNICIPALITY ELECTRICITY

The Elundini Municipal area on Figure 8 covers an area of 5064km2 and is divided into 17 wards. It is located in the east of the Joe Gqabi District Municipality and shares boundaries with the following local municipalities:

· Umzimvubu to the northeast,

· Mhlontlo to the southeast,

· Sakhisizwe to the southwest, and Senqu to the west.

Lesotho is situated on the northern borders of the municipality.

Figure 8: Elundini municipal area source: Elundini annual report

GEOGRAPHIC AND DEMOGRAPHIC PROFILE

The municipality has three towns namely; Mount Fletcher, Maclear and Ugie, and is characterized by vast farming areas in the areas surrounding Maclear and Ugie as well as the Pitseng area in Mt Fletcher. The majority of the municipality’s inhabitants resides in rural villages situated in the foothills of the Maluti Mountains and Southern Drakensburg Range as well as the rural villages inherited from the erstwhile magisterial districts of Tsolo and Qumbu. The R56 runs from Elliot through Elundini Municipal area linking the three towns with KwaZulu–Natal.

POPULATION FIGURES

According to the Census 2011, Elundini Municipality has a population of approximately 138 141 people residing in 37 854 households. This population accounts for 39. 50% of the total population residing in the Joe Gqabi district, making it the most populous local municipality in the district. Based on the latest results by Stats SA, populations of both the JGDM and ELM has increased by 0.23% and 0.05%, respectively, the most increase being noticed around Ugie due to the Steinhoff/PG Bison investment. Table 15 below depicts the population increase as at 2011.

Table 15: Elundini population growth as at 2011

RURAL vs URBAN POPULATION

According to the 2001 Census, 77% of households are rural in nature, this includes rural villages and farm households. This dynamic is shifting with the phenomenon of urban in-migration occurring in Elundini Municipality. This is especially evident in the town of Ugie, where the town’s population has increased from 8 344 in 2001 to approximately 16 355 in 2004. This figure has probably increased with the addition of 2 130 new housing units planned for Ugie, which will accommodate approximately 10 560 people. The establishment of the timber manufacturing plant particularly has a pull effect on the town of Ugie and the neighbouring Maclear, which has had an effect of overstretching the already strained infrastructure.

AGE, GENDER AND RACIAL PROFILE

According to Census 2011, approximately 49.1% of the municipal population fall in the 15 – 54 age categories which can be seen as the economically active sector of the population, with 35.4% of the population below the age of 15. This suggests continuing population growth in the district with a need for educational facilities and a focus on education and skills training. The overall male and female ratio is approximately 47.4% male to 52.6% female. This may be ascribed to the migrant and commuter labour which has resulted in many households having a woman as the head of the household and the chief breadwinner living away from the home. This will impact on the type of development that will occur.

UNEMPLOYMENT AND DEPENDENCY ON SOCIAL GRANTS

Data from the Census 2011 indicates that 44, 1% of the total population of Elundini is unemployed, a decrease of 19, 6% from the 63, 7% in 2001 as depicted by the Table 16 below.

Table 16: Elundini unemployment figures 2011

Data from SASSA as at July 2012 indicated that the total value of state support in the form of grants to Elundini beneficiaries was R 35 473 103. 00 in all the three (3) towns. This figure equals 49, 9% of the total value (R 86 721 101. 00) of state support to the entire Joe Gqabi District.

ELECTRICITY

The municipality has a distribution license, issued by the National Energy Regulator South Africa (NERSA), to supply electricity in the urban areas of Maclear and Ugie, with some small section of these towns supplied by Eskom. The rest of the Elundini Municipal area, mostly rural except the town of Mt Fletcher is supplied by Eskom. The municipality is responsible for the electrification of the areas under their licensed area as well as Eskom.

ELECTRIFICATION

The municipality applied for funding for 150 houses in Maclear, the Greenfields area from the Department of Energy (DoE) during the 2011/12 financial year. An amount of R1 000 000.00 was approved by the DoE. Electrical engineering consultants were appointed in August 2011 for the design of the electrification project. The design was

74 made available, approved by the Municipal Council in January 2012 and contractor for the construction of the works was appointed in June 2012. The work is currently under construction and is expected to be completed by end September 2012.

PROJECTS

The municipality took a decision to evaluate the designs and implementation of past and present electrical projects. Table 17 shows the equitable share priority projects for 2011/12. The following projects were taken into consideration:

· Maclear Electrical Master Plan

· Maclear Substation

· Ugie Electrical Master Plan

· Ugie High Mast Lights

Electrical engineering consultants were appointed to execute a review on the performance of these projects, the benefits thereof, and what can be learnt from these projects.

REDUCTION OF ELECTRICITY DISTRIBUTION LOSSES

The municipality allocated R 2 385 000.00 to implement the strategy for the reduction electricity distribution losses. The project was aiming at several interventions that were identified in the strategy for the effective reduction of the electricity distribution losses. The focus areas were:

Replacement of Faulty Meters in Ugie

One of the areas, of about 300 houses electrified in the early stages in Ugie Township had meters that were faulty and customers were consuming electricity that was not

75 accounted for. A contractor was appointed to replace the faulty meters and the project was completed end June 2012.

Audit and Replacement of Electricity Meters in Ugie and Maclear

Due to corrupt meter and customer information and tampering of meters it was necessary to do a door to door survey of all meter installations. The aim was to identify tampered meters and collect information that will be used to clean data on the vending and billing system. Correct data can be used to easily identify where electricity losses are occurring.

Other interventions included training of staff in metering; installation of equipment on the network to detect where losses occur; formation of an additional unit within the electricity section focusing on revenue protection.

NETWORK MINOR EXTENTIONS AND UPGRADES

From time to time the municipality receives applications for new electricity connection service. After investigating it is found that there is no existing network to connect the customers. Two of these extensions were done in the Sithole area of Maclear at the cost of R 120 000.00 for the construction of the works. Due to additional loading of the network a section of the cable feed from Pote Street transformer was overloaded. Some of the businesses on Van Riebeck Street were diverted from the overloaded network and a cable installed to feed these from the Church mini substation at the cost of R 162 750.00. The section of overhead line feeding from the ESKOM feed point to Ugie townships and Truck stop kept breaking because of the small size of the conductor. The conductor length of about 400 meters was replaced at a cost of R 115 565.00

MAINTENANCE

Annual scheduled inspections were conducted on the existing network to identify defects that can lead to power failures and what maintenance was required. Defects

76 were prioritized based on the available budget and the urgency of the defect depending on the effect it will have. A budget of R 212 000.00 was allocated for maintenance during the 2011/12 financial year. At Maclear substation 5 MVA transformer 2 was leaking oil. The leak was repaired in December 2011 by the contractor that was appointed for building the substation under retention.

With the arrival of the cherry-picker in August 2011, maintenance of streetlights was done by the municipal staff instead of getting external contractors.

EQUITABLE SHARE PROJECTS FOR 2011/12

Table 17: Elundini Equitable share expenditure projects 2011/12

7 ANNEXURE 2 EKURHULENI METROPOLITAN MUNICIPALITY

Ekurhuleni Metropolitan Municipality (EMM) was established as one of eight metropolitan municipalities subsequent to the restructuring of local governments in South Africa in 2000. EMM is rated as the fourth largest municipality in South Africa consisting of nine local authorities and 101 wards.

EMM, also known as East Rand, the eastern region of Gauteng Province in South Africa, consists of 192 355 hectares of land which is occupied by about 2.8 million people, occupying approximately 900 000 households (EMM Full Term Report 2006- 2011, 2011).

EMM united eleven former councils into one local government authority to meet the needs of the communities in a holistic approach. The councils were Alberton, Benoni, Boksburg, Brakpan, Edenvale, Germsiton, Kempton Park/Tembisa, Nigel, Springs, Khayalami Metropolitan Council and Eastern Gauteng Service Council as shown on Figure 9.

Figure 9: Ekurhuleni municipality area source: Ekurhuleni municipality

Ekurhuleni Metropolitan Municipality (EMM) in the location of the Republic of South Africa situated within Gauteng Province.

EMM is responsible for about 23% of the Gross Geographic Product of Gauteng with the inputs of approximately 33 000 business entities, including 8 000 industries, over 5 000 supporting enterprises and an active commercial sector (EMM Full Term Report 2006-2011, 2011), as shown on Table 18. EMM is an entity of globally competitive business and industry and is regarded as the transportation hub of the country with a network of roads, airports, rail lines, telephones, electricity grids and telecommunication networks. The municipality is home to the O.R. Tambo International Airport, the busiest airport in Africa with some 19 million passengers passing through this airport in 2011 (ACSA, 2012).

Ekurhuleni Facts and Figures. (Sourced from EMM Full Term Report 2006-2011, 2011)

Surface Area 1,924 km2

Population +- 2.8 million

Population Density 1,400 people per km2

Proportion of Gauteng Population 28%

Population Growth (2004-07) 1.6%

Main Income Areas Manufacturing, Trade, Social Services

Electricity Use per Annum 15,513,201,926 kWh

Emissions per Capita 7.7 tCO2e

Annual Budget R21 Billion

Budget for IDP Projects R2 Billion

Table 18: Facts and figures of Ekurhuleni municipality

EKURHULENI’S LEGISLATION AND REGULATION

2002: Electricity Bylaw –This document provides for the supply and usage of electricity within the municipal area of the municipality and to provide for matters incidental thereto.

2004: State of the Environmental Report – The Report provides information to decision-makers within EMM to enable them to make informed decisions about the environment in Ekurhuleni. This document presents a summary of the First Year State of the Environment Report for 2003/2004. Both documents aim to provide information on the condition of the existing environment in Ekurhuleni to the public, and to raise awareness of environmental issues which will contribute to the progress toward the achievement of sustainable development.

2004: Ekurhuleni State of Energy Report – The document provides a status report on the use of energy in EMM, which includes an assessment of the type of data available relating to energy supply and demand by energy carrier and by energy user. Through this report, it was documented that energy consumption data was not easily accessible at the local level by city sectors, commercial and industrial sectors. Sources of data used in the report to determine the local energy status were obtained by private entities, such as Eskom and national government departments such as Department of Mineral and Energy and Department of Transport. Results from this report concluded the following energy consumption totals and statistic per sector as detailed below:

Transport: 48,448,484 GJ (41%)

Industry and construction: 42,665,448 GJ (36%)

Residential: 16,974,631 GJ (14%)

Mining: 4,510,144 GJ (4%)

Commercial: 3,554,479 GJ (3%)

Local Government: 1,271,119 GJ (1%)

Agriculture: 1,227,983 GJ (1%)

TOTAL: 118,652,288 GJ (100%) (32,958,968.88 MW*h)

2007: Climate Change and Energy Strategy – This strategy is a plan that aims to integrate and entrench sustainable energy approaches and practices at the local level. It prioritizes and co-ordinates energy and climate change activities. It promotes the improvement of service delivery and quality of life, saving of money and reduction of greenhouse gas emissions. In the short term, it assists the city with its overall development objectives. Although the strategy does indirectly allude to a set target for energy reduction referring to the DME Draft Energy Efficiency Strategy (April 2004) and the National Energy Regulator’s Regulatory Policy on Energy Efficiency and Demand Side Management (EEDSM) for South African Electricity Industry (May 2004). The DME draft policy provides specific targets for reducing energy demand by 2014 within given demand sectors, with an overall target of 12% reduction in consumption.

Devoid of a specific energy reduction target the, the Climate Change Energy Strategy aims aim to support the city’s social, economic and environmental wellbeing, through (SEA, 2007):

 Providing adequate energy for economic growth.  Supporting poverty alleviation by promoting clean, safe and modern energy to households.  Saving money by improving the efficiency of energy use.  Reducing the harmful effects of energy use such as pollution and global warming, by promoting cleaner, renewable energy sources.  Promoting the use of more efficient transport, with a focus on public transport.

EKURHULENI’S PAST ENERGY STATUS

Eskom supplies the city with electricity, from which EMM sells and redistributes electricity to over 400 000 customers, totalling average sales of R10 billion per annum. To understand the energy emissions for EMM as a whole, EMM undertook an energy audit and released the results within the Ekurhuleni State of Energy Report in 2004. From this report the Ekurhuleni Energy and Climate Change Strategy (2007) was developed with the aim to integrate and entrench sustainable energy approaches and practices at the local level.

The GHG inventories are from three different studies providing different GHG results. Between the first two studies it is seen that carbon emissions has decreased considerably in the transport sector by almost half, with the industry sector seen as increasing its carbon emissions from 36% (2004) to 42% (2007). The 2011 study provides a different picture and illustrates a change in the cities carbon emissions pattern. Here Residential/Housing is the largest emitter with the Commercial sector contributing to a larger extent in comparison to the previous studies.

A recent study that was undertaken in 2009, revealed the state of energy in Gauteng within the ‘Gauteng Integrated Energy Strategy: The report revealed that the largest energy consumption within the province ‘comes from transport sector accounting for 66% of the total energy use, with households and commercial sectors using 16% and 10% of the total demand’ respectively (SEA, 2009). The following energy data analysis was revealed from baseline 2007 data for Ekurhuleni Metropolitan Municipality:

ENERGY INITIATIVES UNDERTAKEN BY EKURHULENI FROM 2006 - 2011

 Free Basic Electricity (FBE) set at 100 units (twice of what is required by National Policy) is provided to Tariff A-lifeline and Tariff A customers since June 2005;

 Since 2006 368 High Mast Lights were installed to promote safety and security within the communities;  A total of 3445 street lights were installed;  The Electricity 20 year Master Plan informs expansion and strengthening of networks;  January 2010 a Director: Energy was appointed to focus on energy efficiency initiatives;  2000 high pressure solar water heater systems were installed in various council owned buildings;  1350 low pressure solar water heater systems were installed in hostel complexes;  10 000 solar water heaters were installed to low cost housing during 2010/11 with a ten year free maintenance period;  43 000 energy efficiency lights of various sizes were installed at various council buildings;  400 traffic light intersections were converted to low power LED signal heads;  8 659 street lights were converted to energy efficiency units;  A number of key interventions were made to ensure that electricity revenue processes are managed effectively such as Revenue demand meter, credit meters and Prepayment meters.

EKURHULENI METROPOLITAN MUNICIPALITY: SOLAR PV INSTALLATION

What Leeupan solar photo voltaic (PV) project

Where O. R. Tambo Centre, Leeupan, Benoni, Gauteng

Why A post-COP 15 Council resolution was taken in 2009 to investigate and implement solar projects and increase renewable energy penetration

When October 2012

Who Ekurhuleni Metropolitan Municipality

Funding Construction costs for the PV plant is budgeted internally in the Energy Department Ekurhuleni Metropolitan Municipality showed its commitment to promote low-carbon technologies when it officially unveiled the first and only solar plant of its kind in the country on Friday 12 Oct 2012 as shown on Figure 10. The plant is owned by the municipality and is in line with Ekurhuleni's Energy Strategy, which identifies proactive promotion of green power as essential for creating a sustainable future for the municipality.

Figure 10 Ekurhuleni solar PV plant source: Ekurhuleni municipality

The solar PV plant is located in the O. R. Tambo Precinct, which showcases sustainable technologies and construction techniques including rammed earth, straw bale and cob wall construction, green roof technology, thermal mass earth flooring and solar water heating.

Figure 11: Construction site at Ekurhuleni of solar PV plant source: Ekurhuleni municipality

The plant powers nearby structures, such as the OR Tambo Narrative Centre and the Environmental Education Centre, and the surrounding low-cost housing area. The solar PV plant has a generation capacity of 200 kW from 860 solar PV panels; generating enough electricity to power about 133 low-cost houses. It is planned to expand the solar PV plant to 600 kW capacity over the next 2-3 years. Work under construction shown on Figure 11. An inverter converts direct electricity current generated by the solar panels into alternating current that is fed onto the municipal power grid. Since the system is grid interactive, no batteries are required for electricity storage. An operations and maintenance contract will be established with the service provider for the first 3 years. The costs is planned be funded from capacity and energy charges for electricity production to be transferred to a special established Energy vote number. The operation and maintenance of the power plant is done by simple manual cleaning of the solar panels from rain water and dust. Solar panels are expected to last for 20 to 25 or more if they are properly maintained.

8 ANNEXURE 3

PRIVATE SOLAR PLANT FEEDS INTO CAPE TOWN’S ELECTRICITY GRID ARTICLE

July 31st, 2014, Published in Articles: Energize

The 1,2 MW Black River Park Solar Project, at a 74 000 m2 office park in Observatory, is the first to legally transmit electricity back into Cape Town’s electrical distribution network, Figure 12. The first phase of the project generates 700 kW and has been operating above expectations since August 2013.

Figure 12: City of Cape Town Black river park solar project source: Energize magazine

The second phase will add a further 500 kW. The total project will be able to generate just under 2-million kWh per year from approximately 5500 PV modules. The buy-back rate has been proposed at 49,72c/kWh, which is lower than the rate at which the office park buys electricity from the municipality. This encourages most of the energy generated to be used on site, reducing its carbon footprint and becoming more self-

86 reliant and efficient, while catering for situations where the local demand is less than what is produced by the system. SOLA Future is a South African solar firm responsible for the design, construction and operation of the project as well as the procurement of all regulatory approvals.

Contact Chris Haw, SOLA Future Energy, Tel 021 421-9764, [email protected]

9 ANNEXURE 4

LETTER REQUESTING DATA COLLECTION BY MDUDUZI MNCUBE (S201495178) Letter requesting data collection by Mduduzi Mncube (S201495178) MEng student faculty of Engineering and the Built Environment, University of Johannesburg

Faculty of Engineering and Built Environment

Department of Electrical and Electronic Engineering Science

1 September 2014

TO WHOM IT MAY CONCERN

DATA COLLECTION BY MDUDUZI MNCUBE (S201495178) MEng STUDENT FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT, UNIVERSITY OF JOHANNESBURG

Dear Sir / Madam Mr. Mduduzi Mncube (student number S201495178) is a currently Masters Student with the aim to proceed to PHD next year at the University of Johannesburg in the Faculty of Engineering and Built Environment. He is conducting a research in the area of Renewable Energy (Particularly Solar Energy) in South Africa and the factors and effects of slow delivery/uptake.

Mr. Mncube is requesting will be collecting data for the completion of his thesis and your organization was identified relevant for data collection. I would therefore like to request you to provide him with the data that he needs. The data will be solely used for the fulfillment of his studies in the study area indicated in the first paragraph. Moreover, the data will be handled as strictly confidential and under no circumstance will it be used for any other purpose except the fulfillment of the study and it will not be divulged to any other institution or individual. Your cooperation and support in this request would be highly appreciated. Yours faithfully,

Bhekisipho Twala, Ph.D. Head of Electrical & Electronic Engineering Science Department Professor in Artificial Intelligence & Statistical Science Faculty of Engineering and Built Environment University of Johannesburg

10 ANNEXURE 5 RESEARCH QUESTIONNAIRE

GOVERNMENT (NATIONAL, PROVINCIAL, MUNICIPALITIES, ENERGY REGULATOR)

 What determines electricity price increase?  What determines the electricity supply? (e.g. demand, available capacity, excess capacity etc.)  How are you intending to increase the share of renewable energy (solar PV in particular) in the total energy mix? What are the mechanisms and tools in place to boost solar PV increase?  What are your renewable energy (solar PV in particular) targets?  Is solar PV part of the Government plan? If so how much capacity and what are the timelines?  What are the programmes in place to ensure that the targets are achieved?  What are the financial mechanisms and schemes available to promote renewable energy use (solar PV in particular)  What are the barriers for the development of solar PV in RSA?

11 ANNEXURE 6

LIST OF MUNICIPALITIES

11.1.1 Metropolitan Municipalities Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Eastern

Buffalo City Metropolitan Municipality BUF East London 2,536 755,200 297.8

Cape

Western

City of Cape Town Metropolitan Municipality CPT Cape Town 2,460 3,740,026 1,520.3

Cape

City of Johannesburg Metropolitan Municipality JHB Gauteng Johannesburg 1,645 4,434,827 2,695.9

City of Tshwane Metropolitan Municipality TSH Gauteng Pretoria 6,345 2,921,488 460.4

Ekurhuleni Metropolitan Municipality EKU Gauteng Germiston 1,924 3,178,470 1,652.0

KwaZulu-

eThekwini Metropolitan Municipality ETH Durban 2,292 3,442,361 1,501.9

Natal

Mangaung Metropolitan Municipality MAN Free State Bloemfontein 6,284 747,431 118.9

Eastern

Nelson Mandela Bay Metropolitan Municipality NMA Port Elizabeth 1,959 1,152,115 588.1

Cape

11.1.2 District Municipalities

For comparison purposes the metropolitan municipalities are also included in this list. Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Eastern

Alfred Nzo District Municipality DC44 Mount Ayliff 6,859 801,344 116.8

Cape

KwaZulu-

Amajuba District Municipality DC25 Newcastle 6,911 499,839 72.3

Natal

Eastern

Amathole District Municipality DC12 East London 21,043 892,637 42.4

Cape

Bojanala Platinum District Municipality DC37 North West Rustenburg 18,333 1,507,505 82.2

Eastern

Buffalo City Metropolitan Municipality BUF East London 2,536 755,200 297.8

Cape

Eastern

Cacadu District Municipality DC10 Port Elizabeth 58,194 450,584 7.7

Cape

Western

Cape Winelands District Municipality DC2 Worcester 22,309 787,490 35.3

Cape

Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Capricorn District Municipality DC35 Limpopo Polokwane 16,988 1,261,463 74.3

Western

Central Karoo District Municipality DC5 Beaufort West 38,854 71,011 1.8

Cape

Eastern

Chris Hani District Municipality DC13 Queenstown 36,695 795,461 21.7

Cape

Western

City of Cape Town Metropolitan Municipality CPT Cape Town 2,460 3,740,026 1,520.3

Cape

City of Johannesburg Metropolitan Municipality JHB Gauteng Johannesburg 1,645 4,434,827 2,695.9

City of Tshwane Metropolitan Municipality TSH Gauteng Pretoria 6,345 2,921,488 460.4

Dr Kenneth Kaunda District Municipality DC40 North West Klerksdorp 14,642 695,933 47.5

Dr Ruth Segomotsi Mompati District

DC39 North West Vryburg 44,017 463,815 10.5

Municipality

Western

Eden District Municipality DC4 George 23,331 574,265 24.6

Cape

Mpumalang

Ehlanzeni District Municipality DC32 Nelspruit 27,896 1,688,615 60.5

Ekurhuleni Metropolitan Municipality EKU Gauteng Germiston 1,924 3,178,470 1,652.0

Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

KwaZulu- eThekwini Metropolitan Municipality ETH Durban 2,292 3,442,361 1,501.9

Natal

Fezile Dabi District Municipality DC20 Free State Sasolburg 21,301 488,036 22.9

Northern

Frances Baard District Municipality DC9 Kimberley 13,518 382,086 28.3

Cape

Mpumalang

Gert Sibande District Municipality DC30 Secunda 31,841 1,043,194 32.8

KwaZulu- iLembe District Municipality DC29 KwaDukuza 3,269 606,809 185.6

Natal

Eastern

Joe Gqabi District Municipality DC14 Barkly East 25,663 349,768 13.6

Cape

Northern

John Taolo Gaetsewe District Municipality DC45 Kuruman 27,283 224,799 8.2

Cape

Lejweleputswa District Municipality DC18 Free State Welkom 31,930 627,626 19.7

Mangaung Metropolitan Municipality MAN Free State Bloemfontein 6,284 747,431 118.9

Mopani District Municipality DC33 Limpopo Giyani 24,489 1,092,507 44.6

Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Northern

Namakwa District Municipality DC6 Springbok 126,836 115,842 0.9

Cape

Eastern

Nelson Mandela Bay Metropolitan Municipality NMA Port Elizabeth 1,959 1,152,115 588.1

Cape

Ngaka Modiri Molema District Municipality DC38 North West Mafikeng 27,889 842,699 30.2

Mpumalang

Nkangala District Municipality DC31 Middelburg 16,758 1,308,129 78.1

Eastern

OR Tambo District Municipality DC15 Mthatha 15,968 1,364,943 85.5

Cape

Western

Overberg District Municipality DC3 Bredasdorp 11,405 258,176 22.6

Cape

Northern

Pixley ka Seme District Municipality DC7 De Aar 102,727 186,351 1.8

Cape

Sedibeng District Municipality DC42 Gauteng Vereeniging 4,177 916,484 219.4

Sekhukhune District Municipality DC47 Limpopo Groblersdal 13,426 1,076,840 80.2

KwaZulu-

Sisonke District Municipality DC43 Ixopo 11,127 461,419 41.5

Natal

Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Northern

Siyanda District Municipality DC8 Upington 102,524 236,783 2.3

Cape

Thabo Mofutsanyana District Municipality DC19 Free State Phuthaditjhaba 32,637 736,238 22.6

KwaZulu-

Ugu District Municipality DC21 Port Shepstone 5,047 722,484 143.2

Natal

KwaZulu- uMgungundlovu District Municipality DC22 Pietermaritzburg 8,934 1,017,763 113.9

Natal

KwaZulu- uMkhanyakude District Municipality DC27 Mkuze 12,821 625,846 48.8

Natal

KwaZulu- uMzinyathi District Municipality DC24 Dundee 8,589 510,838 59.5

Natal

KwaZulu- uThukela District Municipality DC23 Ladysmith 11,326 668,848 59.1

Natal

KwaZulu- uThungulu District Municipality DC28 Richards Bay 8,213 907,519 110.5

Natal

Vhembe District Municipality DC34 Limpopo Thohoyandou 21,349 1,294,722 60.6

Waterberg District Municipality DC36 Limpopo Modimolle 49,504 679,336 13.7

Area Population Pop. density Name Code Province Seat (km²) (2011) (per km²)

Western

West Coast District Municipality DC1 Moorreesburg 31,104 391,766 12.6

Cape

West Rand District Municipality DC48 Gauteng Randfontein 4,087 820,995 200.9

Xhariep District Municipality DC16 Free State Trompsburg 37,674 146,259 3.9

KwaZulu-

Zululand District Municipality DC26 Ulundi 14,799 803,575 54.3

Natal

11.1.3 Local Municipalities

For comparison purposes the metropolitan municipalities are also included in this list. Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

KwaZulu-

Abaqulusi Local Municipality KZN263 Zululand Vryheid 4,185 211,060 50.4

Natal

Aganang Local Municipality LIM352 Limpopo Capricorn Koloti 1,881 131,164 69.7

Albert Luthuli Local

MP301 Mpumalanga Gert Sibande Carolina 5,559 186,010 33.5

Municipality

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Eastern

Amahlathi Local Municipality EC124 Amathole Stutterheim 4,820 122,778 25.5

Cape

Ba-Phalaborwa Local

LIM334 Limpopo Mopani Phalaborwa 7,462 150,637 20.2

Municipality

Eastern

Baviaans Local Municipality EC107 Cacadu Willowmore 11,668 17,761 1.5

Cape

Beaufort West Local Western

WC053 Central Karoo Beaufort West 21,917 49,586 2.3

Municipality Cape

Bela-Bela Local Municipality LIM366 Limpopo Waterberg Bela-Bela 3,406 66,500 19.5

Western

Bergrivier Local Municipality WC013 West Coast Piketberg 4,407 61,897 14.0

Cape

Western

Bitou Local Municipality WC047 Eden Plettenberg Bay 992 49,162 49.6

Cape

Capricorn

Blouberg Local Municipality LIM351 Limpopo Senwabarwana 9,248 162,629 17.6

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Blue Crane Route Local Eastern

EC102 Cacadu Somerset East 11,068 36,002 3.3

Municipality Cape

Breede Valley Local Western Cape

WC025 Worcester 3,833 166,825 43.5

Municipality Cape Winelands

Buffalo City Metropolitan Eastern

BUF East London 2,536 755,200 297.8

Municipality Cape

Bushbuckridge Local

MP325 Mpumalanga Ehlanzeni Bushbuckridge 10,250 541,248 52.8

Municipality

Camdeboo Local Eastern

EC101 Cacadu Graaff-Reinet 12,422 50,993 4.1

Municipality Cape

Cape Agulhas Local Western

WC033 Overberg Bredasdorp 3,467 33,038 9.5

Municipality Cape

Cederberg Local Western

WC012 West Coast Clanwilliam 8,007 49,768 6.2

Municipality Cape

City of Cape Town Western

CPT Cape Town 2,460 3,740,026 1,520.3

Metropolitan Municipality Cape

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

City of Johannesburg

JHB Gauteng Johannesburg 1,645 4,434,827 2,695.9

Metropolitan Municipality

City of Matlosana Local Dr Kenneth

NW403 North West Klerksdorp 3,561 398,676 112.0

Municipality Kaunda

City of Tshwane

TSH Gauteng Pretoria 6,345 2,921,488 460.4

Metropolitan Municipality

Dannhauser Local KwaZulu-

KZN254 Amajuba Dannhauser 1,516 102,161 67.4

Municipality Natal

Thabo

Dihlabeng Local Municipality FS192 Free State Bethlehem 4,880 128,704 26.4

Mofutsanyana

Dikgatlong Local Northern

NC092 Frances Baard Barkly West 7,315 46,841 6.4

Municipality Cape

Dipaleseng Local

MP306 Mpumalanga Gert Sibande Balfour 2,617 42,390 16.2

Municipality

Ngaka Modiri

Ditsobotla Local Municipality NW384 North West Lichtenburg 6,465 168,902 26.1

Molema

100

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Dr JS Moroka Local

MP316 Mpumalanga Nkangala Siyabuswa 1,416 249,705 176.3

Municipality

Drakenstein Local Western Cape

WC023 Paarl 1,538 251,262 163.4

Municipality Cape Winelands

KwaZulu- eDumbe Local Municipality KZN261 Zululand Paulpietersburg 1,943 82,053 42.2

Natal

Ekurhuleni Metropolitan

EKU Gauteng Germiston 1,924 3,178,470 1,652.0

Municipality

Elias Motsoaledi Local

LIM472 Limpopo Sekhukhune Groblersdal 3,713 249,363 67.2

Municipality

Eastern

Elundini Local Municipality EC141 Joe Gqabi Maclear 5,065 138,141 27.3

Cape eMadlangeni Local KwaZulu-

KZN253 Amajuba Utrecht 3,539 34,442 9.7

Municipality Natal

Emakhazeni Local

MP314 Mpumalanga Nkangala Belfast 4,736 47,216 10.0

Municipality

101

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Emalahleni Local Eastern

EC136 Chris Hani Lady Frere 3,447 119,460 34.7

Municipality Cape

Emalahleni Local

MP312 Mpumalanga Nkangala Witbank 2,678 395,466 147.7

Municipality

Emfuleni Local Municipality GT421 Gauteng Sedibeng Vanderbijlpark 966 721,663 747.1

Emnambithi/Ladysmith Local KwaZulu-

KZN232 uThukela Ladysmith 2,965 237,437 80.1

Municipality Natal

Emthanjeni Local Northern

NC073 Pixley ka Seme De Aar 13,472 42,356 3.1

Municipality Cape

KwaZulu-

Endumeni Local Municipality KZN241 uMzinyathi Dundee 1,610 64,862 40.3

Natal

Eastern

Engcobo Local Municipality EC137 Chris Hani Ngcobo 2,484 155,513 62.6

Cape

Ephraim Mogale Local

LIM471 Limpopo Sekhukhune Marble Hall 2,011 123,648 61.5

Municipality eThekwini Metropolitan KwaZulu-

ETH Durban 2,292 3,442,361 1,501.9

Municipality Natal

102

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

KwaZulu-

Ezingoleni Local Municipality KZN215 Ugu Izingolweni 648 52,540 81.1

Natal

Fetakgomo Local

LIM474 Limpopo Sekhukhune Apel 1,105 93,795 84.9

Municipality

Ga-Segonyana Local Northern John Taolo

NC452 Kuruman 4,492 93,652 20.8

Municipality Cape Gaetsewe

Gamagara Local Northern John Taolo

NC453 Kathu 2,619 41,617 15.9

Municipality Cape Gaetsewe

Eastern

Gariep Local Municipality EC144 Joe Gqabi Burgersdorp 8,911 33,677 3.8

Cape

Western

George Local Municipality WC044 Eden George 5,191 193,672 37.3

Cape

Govan Mbeki Local

MP307 Mpumalanga Gert Sibande Secunda 2,955 294,538 99.7

Municipality

Eastern

Great Kei Local Municipality EC123 Amathole Komga 1,736 38,991 22.5

Cape

103

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Greater Giyani Local

LIM331 Limpopo Mopani Giyani 4,172 244,217 58.5

Municipality

Greater Kokstad Local KwaZulu-

KZN433 Sisonke Kokstad 2,680 65,981 24.6

Municipality Natal

Greater Letaba Local

LIM332 Limpopo Mopani Modjadjiskloof 1,891 212,701 112.5

Municipality

Dr Ruth Greater Taung Local

NW394 North West Segomotsi Taung 5,635 177,642 31.5

Municipality

Mompati

Greater Tubatse Local

LIM475 Limpopo Sekhukhune Burgersfort 4,602 335,676 72.9

Municipality

Greater Tzaneen Local

LIM333 Limpopo Mopani Tzaneen 3,243 390,095 120.3

Municipality

Northern

Hantam Local Municipality NC065 Namakwa Calvinia 36,128 21,578 0.6

Cape

Western

Hessequa Local Municipality WC042 Eden Riversdale 5,733 52,642 9.2

Cape

104

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Hibiscus Coast Local KwaZulu-

KZN216 Ugu Port Shepstone 839 256,135 305.3

Municipality Natal

KwaZulu-

Hlabisa Local Municipality KZN274 uMkhanyakude Hlabisa 1,555 71,925 46.3

Natal

Eastern

Ikwezi Local Municipality EC103 Cacadu Jansenville 4,563 10,537 2.3

Cape

Imbabazane Local KwaZulu-

KZN236 uThukela Ntabamhlophe 1,426 113,073 79.3

Municipality Natal

KwaZulu-

Impendle Local Municipality KZN224 uMgungundlovu Impendle 1,528 33,105 21.7

Natal

KwaZulu-

Indaka Local Municipality KZN233 uThukela Wasbank 992 103,116 103.9

Natal

Ingquza Hill Local Eastern

EC153 OR Tambo Flagstaff 2,477 278,481 112.4

Municipality Cape

KwaZulu-

Ingwe Local Municipality KZN431 Sisonke Creighton 1,976 100,548 50.9

Natal

105

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Eastern

Inkwanca Local Municipality EC133 Chris Hani Molteno 3,584 21,971 6.1

Cape

Intsika Yethu Local Eastern

EC135 Chris Hani Cofimvaba 2,711 145,372 53.6

Municipality Cape

Inxuba Yethemba Local Eastern

EC131 Chris Hani Cradock 11,663 65,560 5.6

Municipality Cape

Joe Morolong Local Northern John Taolo

NC451 Mothibistad 20,172 89,530 4.4

Municipality Cape Gaetsewe

KwaZulu-

Jozini Local Municipality KZN272 uMkhanyakude Jozini 3,442 186,502 54.2

Natal

Dr Ruth Kagisano-Molopo Local

NW397 North West Segomotsi Ganyesa 23,827 105,789 4.4

Municipality

Mompati

Northern

Kai !Garib Local Municipality NC082 Siyanda Kakamas 26,358 65,869 2.5

Cape

Kamiesberg Local Northern

NC064 Namakwa Garies 14,210 10,187 0.7

Municipality Cape

106

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Kannaland Local Western

WC041 Eden Ladismith 4,758 24,767 5.2

Municipality Cape

Northern

Kareeberg Local Municipality NC074 Pixley ka Seme Carnarvon 17,702 11,673 0.7

Cape

Karoo Hoogland Local Northern

NC066 Namakwa Williston 32,274 12,588 0.4

Municipality Cape

Kgatelopele Local Northern

NC086 Siyanda Daniëlskuil 2,478 18,687 7.5

Municipality Cape

Kgetlengrivier Local Bojanala

NW374 North West Koster 3,973 51,049 12.8

Municipality Platinum

Northern

Khâi-Ma Local Municipality NC067 Namakwa Pofadder 16,628 12,465 0.7

Cape

Khara Hais Local Northern

NC083 Siyanda Upington 21,780 93,494 4.3

Municipality Cape

Northern

!Kheis Local Municipality NC084 Siyanda Groblershoop 11,107 16,637 1.5

Cape

107

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

King Sabata Dalindyebo Eastern

EC157 OR Tambo Mthatha 3,027 451,710 149.2

Local Municipality Cape

Western

Knysna Local Municipality WC048 Eden Knysna 1,109 68,659 61.9

Cape

Kopanong Local Municipality FS162 Free State Xhariep Trompsburg 15,645 49,171 3.1

Kou-Kamma Local Eastern

EC109 Cacadu Kareedouw 3,593 40,663 11.3

Municipality Cape

Eastern

Kouga Local Municipality EC108 Cacadu Jeffreys Bay 2,670 98,558 36.9

Cape

KwaDukuza Local KwaZulu-

KZN292 iLembe KwaDukuza 735 231,187 314.5

Municipality Natal

KwaZulu-

KwaSani Local Municipality KZN432 Sisonke Himeville 1,852 12,898 7.0

Natal

Laingsburg Local Western

WC051 Central Karoo Laingsburg 8,784 8,289 0.9

Municipality Cape

Langeberg Local Western Cape

WC026 Ashton 4,518 97,724 21.6

Municipality Cape Winelands

108

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Lekwa Local Municipality MP305 Mpumalanga Gert Sibande Standerton 4,585 115,662 25.2

Dr Ruth Lekwa-Teemane Local

NW396 North West Segomotsi Christiana 3,681 53,248 14.5

Municipality

Mompati

Lepelle-Nkumpi Local

LIM355 Limpopo Capricorn Chuniespoort 3,463 230,350 66.5

Municipality

Lephalale Local Municipality LIM362 Limpopo Waterberg Lephalale 13,784 115,767 8.4

Lesedi Local Municipality GT423 Gauteng Sedibeng Heidelberg 1,484 99,520 67.1

Letsemeng Local

FS161 Free State Xhariep Koffiefontein 9,829 38,628 3.9

Municipality

Eastern

Lukhanji Local Municipality EC134 Chris Hani Queenstown 3,813 190,723 50.0

Cape

Bojanala

Madibeng Local Municipality NW372 North West Brits 3,839 477,381 124.4

Platinum

Mafube Local Municipality FS205 Free State Fezile Dabi Frankfort 3,971 57,876 14.6

Northern

Magareng Local Municipality NC093 Frances Baard Warrenton 1,542 24,204 15.7

Cape

109

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Ngaka Modiri

Mahikeng Local Municipality NW383 North West Mahikeng 3,698 291,527 78.8

Molema

Eastern

Makana Local Municipality EC104 Cacadu Grahamstown 4,376 80,390 18.4

Cape

Makhado Local Municipality LIM344 Limpopo Vhembe Louis Trichardt 8,300 516,031 62.2

Makhuduthamaga Local

LIM473 Limpopo Sekhukhune Jane Furse 2,097 274,358 130.8

Municipality

Eastern

Maletswai Local Municipality EC143 Joe Gqabi Aliwal North 4,358 43,800 10.1

Cape

Maluti-a-Phofung Local Thabo

FS194 Free State Phuthaditjhaba 4,338 335,784 77.4

Municipality Mofutsanyana

Dr Ruth Schweizer-

Mamusa Local Municipality NW393 North West Segomotsi 3,615 60,355 16.7

Reneke

Mompati

KwaZulu-

Mandeni Local Municipality KZN291 iLembe Mandeni 545 138,078 253.4

Natal

110

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Mangaung Metropolitan

MAN Free State Bloemfontein 6,284 747,431 118.9

Municipality

Thabo

Mantsopa Local Municipality FS196 Free State Ladybrand 4,291 51,056 11.9

Mofutsanyana

Maphumulo Local KwaZulu-

KZN294 iLembe Maphumulo 896 96,724 108.0

Municipality Natal

Maquassi Hills Local Dr Kenneth

NW404 North West Wolmaransstad 4,643 77,794 16.8

Municipality Kaunda

Maruleng Local Municipality LIM335 Limpopo Mopani Hoedspruit 3,244 94,857 29.2

Masilonyana Local

FS181 Free State Lejweleputswa Theunissen 6,796 63,334 9.3

Municipality

Eastern

Matatiele Local Municipality EC441 Alfred Nzo Matatiele 4,352 203,843 46.8

Cape

Matjhabeng Local

FS184 Free State Lejweleputswa Welkom 5,155 406,461 78.8

Municipality

Matzikama Local Western

WC011 West Coast Vredendal 12,981 67,147 5.2

Municipality Cape

111

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Eastern

Mbhashe Local Municipality EC121 Amathole Dutywa 3,169 254,909 80.4

Cape

Eastern

Mbizana Local Municipality EC443 Alfred Nzo Bizana 2,417 281,905 116.6

Cape

Mbombela Local Municipality MP322 Mpumalanga Ehlanzeni Nelspruit 5,394 588,794 109.2

KwaZulu-

Mbonambi Local Municipality KZN281 uThungulu KwaMbonambi 1,210 122,889 101.6

Natal

Merafong City Local

GT484 Gauteng West Rand Carletonville 1,631 197,520 121.1

Municipality

Metsimaholo Local

FS204 Free State Fezile Dabi Sasolburg 1,717 149,108 86.8

Municipality

Eastern

Mhlontlo Local Municipality EC156 OR Tambo Qumbu 2,826 188,226 66.6

Cape

Midvaal Local Municipality GT422 Gauteng Sedibeng Meyerton 1,722 95,301 55.3

Northern

Mier Local Municipality NC081 Siyanda Mier 22,468 7,003 0.3

Cape

112

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Mkhambathini Local KwaZulu-

KZN226 uMgungundlovu Camperdown 891 63,142 70.9

Municipality Natal

Mkhondo Local Municipality MP303 Mpumalanga Gert Sibande Piet Retief 4,882 171,982 35.2

Eastern

Mnquma Local Municipality EC122 Amathole Gcuwa 3,270 252,390 77.2

Cape

Modimolle Local Municipality LIM365 Limpopo Waterberg Modimolle 4,678 68,513 14.6

Mogalakwena Local

LIM367 Limpopo Waterberg Mokopane 6,166 307,682 49.9

Municipality

Mogale City Local

GT481 Gauteng West Rand Krugersdorp 1,342 362,422 270.1

Municipality

Mohokare Local Municipality FS163 Free State Xhariep Zastron 8,776 34,146 3.9

Molemole Local Municipality LIM353 Limpopo Capricorn Dendron 3,347 108,321 32.4

Mookgophong Local

LIM364 Limpopo Waterberg Mookgophong 5,689 35,640 6.3

Municipality

Moqhaka Local Municipality FS201 Free State Fezile Dabi Kroonstad 7,925 160,532 20.3

Bojanala

Moretele Local Municipality NW371 North West Makapanstad 1,379 186,947 135.6

Platinum

113

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Moses Kotane Local Bojanala

NW375 North West Mogwase 5,719 242,554 42.4

Municipality Platinum

Mossel Bay Local Western

WC043 Eden Mossel Bay 2,011 89,430 44.5

Municipality Cape

KwaZulu-

Mpofana Local Municipality KZN223 uMgungundlovu Mooi River 1,820 38,103 20.9

Natal

KwaZulu-

Msinga Local Municipality KZN244 uMzinyathi Tugela Ferry 2,501 177,577 71.0

Natal

Msukaligwa Local

MP302 Mpumalanga Gert Sibande Ermelo 6,016 149,377 24.8

Municipality

KwaZulu-

Msunduzi Local Municipality KZN225 uMgungundlovu Pietermaritzburg 634 618,536 975.6

Natal

Mthonjaneni Local KwaZulu-

KZN285 uThungulu Melmoth 1,086 47,818 44.0

Municipality Natal

Mtubatuba Local KwaZulu-

KZN275 uMkhanyakude Mtubatuba 1,738 175,425 100.9

Municipality Natal

Musina Local Municipality LIM341 Limpopo Vhembe Musina 7,577 68,359 9.0

114

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Mutale Local Municipality LIM342 Limpopo Vhembe Mutale 3,886 91,870 23.6

Nala Local Municipality FS185 Free State Lejweleputswa Bothaville 4,129 81,220 19.7

Dr Ruth

Naledi Local Municipality NW392 North West Segomotsi Vryburg 6,941 66,781 9.6

Mompati

Naledi Local Municipality FS164 Free State Xhariep Dewetsdorp 3,424 24,314 7.1

Nama Khoi Local Northern

NC062 Namakwa Springbok 17,989 47,041 2.6

Municipality Cape

Eastern

Ndlambe Local Municipality EC105 Cacadu Port Alfred 1,841 61,176 33.2

Cape

KwaZulu-

Ndwedwe Local Municipality KZN293 iLembe Ndwedwe 1,093 140,820 128.8

Natal

Nelson Mandela Bay Eastern

NMA Port Elizabeth 1,959 1,152,115 588.1

Metropolitan Municipality Cape

KwaZulu-

Newcastle Local Municipality KZN252 Amajuba Newcastle 1,855 363,236 195.8

Natal

115

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Ngqushwa Local Eastern

EC126 Amathole Peddie 2,241 72,190 32.2

Municipality Cape

Ngwathe Local Municipality FS203 Free State Fezile Dabi Parys 7,055 120,520 17.1

KwaZulu-

Nkandla Local Municipality KZN286 uThungulu Nkandla 1,828 114,416 62.6

Natal

Thabo

Nketoana Local Municipality FS193 Free State Reitz 5,611 60,324 10.8

Mofutsanyana

Nkomazi Local Municipality MP324 Mpumalanga Ehlanzeni Malalane 4,787 390,610 81.6

Eastern

Nkonkobe Local Municipality EC127 Amathole Fort Beaufort 3,626 127,115 35.1

Cape

KwaZulu-

Nongoma Local Municipality KZN265 Zululand Nongoma 2,182 194,908 89.3

Natal

KwaZulu-

Nquthu Local Municipality KZN242 uMzinyathi Nquthu 1,962 165,307 84.3

Natal

Ntabankulu Local Eastern

EC444 Alfred Nzo Ntabankulu 1,385 123,976 89.5

Municipality Cape

116

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Ntambanana Local KwaZulu-

KZN283 uThungulu Bhucanana 1,083 74,336 68.6

Municipality Natal

Eastern

Nxuba Local Municipality EC128 Amathole Adelaide 2,732 24,264 8.9

Cape

Eastern

Nyandeni Local Municipality EC155 OR Tambo Libode 2,474 290,390 117.4

Cape

Okhahlamba Local KwaZulu-

KZN235 uThukela Bergville 3,971 132,068 33.3

Municipality Natal

Oudtshoorn Local Western

WC045 Eden Oudtshoorn 3,537 95,933 27.1

Municipality Cape

Overstrand Local Western

WC032 Overberg Hermanus 1,708 80,432 47.1

Municipality Cape

Northern

Phokwane Local Municipality NC094 Frances Baard Hartswater 834 63,000 75.5

Cape

Phumelela Local Thabo

FS195 Free State Vrede 8,183 47,772 5.8

Municipality Mofutsanyana

117

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Pixley Ka Seme Local

MP304 Mpumalanga Gert Sibande Volksrust 5,227 83,235 15.9

Municipality

Polokwane Local

LIM354 Limpopo Capricorn Polokwane 3,766 628,999 167.0

Municipality

Port St Johns Local Eastern

EC154 OR Tambo Port St Johns 1,291 156,136 120.9

Municipality Cape

Prince Albert Local Western

WC052 Central Karoo Prince Albert 8,153 13,136 1.6

Municipality Cape

Ramotshere Moiloa Local Ngaka Modiri

NW385 North West Zeerust 7,193 150,713 21.0

Municipality Molema

Randfontein Local

GT482 Gauteng West Rand Randfontein 475 149,286 314.3

Municipality

Ngaka Modiri

Ratlou Local Municipality NW381 North West Setlagole 4,884 107,339 22.0

Molema

Renosterberg Local Northern

NC075 Pixley ka Seme Petrusville 5,527 10,978 2.0

Municipality Cape

118

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

KwaZulu-

Richmond Local Municipality KZN227 uMgungundlovu Richmond 1,256 65,793 52.4

Natal

Richtersveld Local Northern

NC061 Namakwa Port Nolloth 9,608 11,982 1.2

Municipality Cape

Rustenburg Local Bojanala

NW373 North West Rustenburg 3,423 549,575 160.6

Municipality Platinum

Sakhisizwe Local Eastern

EC138 Chris Hani Cala 2,355 63,582 27.0

Municipality Cape

Saldanha Bay Local Western

WC014 West Coast Vredenburg 2,015 99,193 49.2

Municipality Cape

Eastern

Senqu Local Municipality EC142 Joe Gqabi Lady Grey 7,329 134,150 18.3

Cape

Thabo

Setsoto Local Municipality FS191 Free State Ficksburg 5,966 112,597 18.9

Mofutsanyana

Siyancuma Local Northern

NC078 Pixley ka Seme Douglas 16,753 37,076 2.2

Municipality Cape

119

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Siyathemba Local Northern

NC077 Pixley ka Seme Prieska 14,725 21,591 1.5

Municipality Cape

Sol Plaatje Local Northern

NC091 Frances Baard Kimberley 3,145 248,041 78.9

Municipality Cape

Stellenbosch Local Western Cape

WC024 Stellenbosch 831 155,733 187.4

Municipality Cape Winelands

Steve Tshwete Local

MP313 Mpumalanga Nkangala Middelburg 3,976 229,831 57.8

Municipality

Sundays River Valley Local Eastern

EC106 Cacadu Kirkwood 5,994 54,504 9.1

Municipality Cape

Western

Swartland Local Municipality WC015 West Coast Malmesbury 3,707 113,762 30.7

Cape

Swellendam Local Western

WC034 Overberg Swellendam 3,835 35,916 9.4

Municipality Cape

Thaba Chweu Local

MP321 Mpumalanga Ehlanzeni Lydenburg 5,719 98,387 17.2

Municipality

120

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Thabazimbi Local

LIM361 Limpopo Waterberg Thabazimbi 11,190 85,234 7.6

Municipality

The Big Five False Bay Local KwaZulu-

KZN273 uMkhanyakude Hluhluwe 2,121 35,258 16.6

Municipality Natal

Theewaterskloof Local Western

WC031 Overberg Caledon 3,232 108,790 33.7

Municipality Cape

Thembelihle Local Northern

NC076 Pixley ka Seme Hopetown 8,023 15,701 2.0

Municipality Cape

Thembisile Hani Local

MP315 Mpumalanga Nkangala eMpumalanga 2,384 310,458 130.2

Municipality

Thulamela Local Municipality LIM343 Limpopo Vhembe Thohoyandou 5,835 618,462 106.0

Dr Kenneth

Tlokwe Local Municipality NW402 North West Potchefstroom 2,674 162,762 60.9

Kaunda

Tokologo Local Municipality FS182 Free State Lejweleputswa Boshof 9,326 28,986 3.1

Tsantsabane Local Northern

NC085 Siyanda Postmasburg 18,333 35,093 1.9

Municipality Cape

121

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Eastern

Tsolwana Local Municipality EC132 Chris Hani Tarkastad 6,087 33,281 5.5

Cape

Ngaka Modiri

Tswaing Local Municipality NW382 North West Delareyville 5,966 124,218 20.8

Molema

Tswelopele Local

FS183 Free State Lejweleputswa Bultfontein 6,524 47,625 7.3

Municipality

Ubuhlebezwe Local KwaZulu-

KZN434 Sisonke Ixopo 1,604 101,691 63.4

Municipality Natal

Northern

Ubuntu Local Municipality NC071 Pixley ka Seme Victoria West 20,389 18,601 0.9

Cape

KwaZulu-

Ulundi Local Municipality KZN266 Zululand Ulundi 3,250 188,317 57.9

Natal

KwaZulu-

Umdoni Local Municipality KZN212 Ugu Scottburgh 252 78,875 313.0

Natal uMhlabuyalingana Local KwaZulu-

KZN271 uMkhanyakude Kwangwanase 3,964 156,736 39.5

Municipality Natal

122

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²) uMhlathuze Local KwaZulu-

KZN282 uThungulu Richards Bay 793 334,459 421.8

Municipality Natal

Umjindi Local Municipality MP323 Mpumalanga Ehlanzeni Barberton 1,745 69,577 39.9

KwaZulu- uMlalazi Local Municipality KZN284 uThungulu Eshowe 2,214 213,601 96.5

Natal

KwaZulu- uMngeni Local Municipality KZN222 uMgungundlovu Howick 1,567 92,710 59.2

Natal uMshwathi Local KwaZulu-

KZN221 uMgungundlovu Wartburg 1,818 106,374 58.5

Municipality Natal

Umsobomvu Local Northern

NC072 Pixley ka Seme Colesberg 6,819 28,376 4.2

Municipality Cape

KwaZulu-

Umtshezi Local Municipality KZN234 uThukela Estcourt 1,972 83,153 42.2

Natal uMuziwabantu Local KwaZulu-

KZN214 Ugu Harding 1,089 96,556 88.7

Municipality Natal

KwaZulu-

Umvoti Local Municipality KZN245 uMzinyathi Greytown 2,516 103,093 41.0

Natal

123

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Umzimkhulu Local KwaZulu-

KZN435 Sisonke Umzimkhulu 2,435 180,302 74.0

Municipality Natal

Umzimvubu Local Eastern

EC442 Alfred Nzo Mount Frere 2,577 191,620 74.4

Municipality Cape

KwaZulu-

Umzumbe Local Municipality KZN213 Ugu Mtwalume 1,259 160,975 127.9

Natal uPhongolo Local KwaZulu-

KZN262 Zululand Pongola 3,239 127,238 39.3

Municipality Natal

Ventersdorp Local Dr Kenneth

NW401 North West Ventersdorp 3,764 56,702 15.1

Municipality Kaunda

Victor Khanye Local

MP311 Mpumalanga Nkangala Delmas 1,568 75,452 48.1

Municipality

Vulamehlo Local KwaZulu-

KZN211 Ugu Scottburgh 960 77,403 80.6

Municipality Natal

Westonaria Local

GT483 Gauteng West Rand Westonaria 640 111,767 174.6

Municipality

124

Area Population Pop. density Name Code Province District Seat (km²) (2011) (per km²)

Witzenberg Local Western Cape

WC022 Ceres 10,753 115,946 10.8

Municipality Cape Winelands

125