Matjhabeng Municipality Pushes to Become First Local Municipality to Generate Its Own Electricity
Viable News Team 
Welkom, Free State – In a bold move that could reshape the future of local governance and service delivery, the Matjhabeng Municipality has announced plans to become the first local municipality in South Africa to secure a licence to generate its own electricity.
Executive Mayor Thanduxolo Khalipha made the announcement this week, outlining a vision to not only strengthen the municipality’s energy infrastructure but also empower local communities through construction and job creation.
Building an Energy Hub
The municipality, in collaboration with the Department of Electricity and Energy, will establish an energy technical working group tasked with driving the project forward. The group will focus on improving the region’s electricity infrastructure, exploring alternative energy options, and ensuring that Matjhabeng can sustainably meet the growing demand for power.
Khalipha revealed that Matjhabeng is preparing to host an investment summit in October, where potential investors will be invited to support the creation of what is being described as an energy hub for the Free State.
“The City of eThekwini already has their licence. We will be visiting them to learn, but we want to be the first local municipality in the country to get that licence. This is in the interest of our people because we want them to benefit. Construction will be done by Matjhabeng, not private people we will empower our people,” Khalipha said.
Reducing Dependence on Eskom
South Africa’s ongoing electricity crisis has placed enormous strain on municipalities, which rely heavily on Eskom for supply. Load shedding has disrupted businesses, schools, and households across the country, deepening calls for municipalities to explore alternative energy solutions.
If successful, Matjhabeng’s plan could reduce its dependence on Eskom, create greater energy stability for residents, and set a precedent for other municipalities to follow.
Learning from eThekwini
Khalipha pointed to eThekwini Municipality, which already holds a power generation licence, as a model Matjhabeng intends to study. While metropolitan municipalities such as Cape Town, Johannesburg, and eThekwini have been exploring ways to supplement Eskom’s supply through independent power producers (IPPs), local municipalities have lagged behind.
Matjhabeng’s bid to become the first local-level municipality to hold such a licence marks a significant shift in the energy landscape.
A Community-Centered Approach
What sets Matjhabeng’s plan apart is its emphasis on community empowerment. According to Khalipha, construction of energy infrastructure will be carried out by local workers, not outsourced entirely to private contractors.
This approach, he says, will ensure that investment translates directly into jobs, skills development, and long-term benefits for residents of Welkom and surrounding areas.
“We will empower our people,” Khalipha stressed, underscoring the municipality’s commitment to inclusive economic growth.
Investment Summit: A Turning Point
The upcoming October investment summit will be pivotal. The municipality hopes to attract both domestic and international investors willing to partner in renewable energy projects, grid upgrades, and infrastructure development.
Energy experts note that while securing funding is crucial, the municipality will also need strong governance, technical expertise, and accountability to turn its vision into a reality.
A Test Case for Local Government
Matjhabeng’s initiative comes at a time when municipalities across South Africa are under pressure to deliver reliable services amid growing public dissatisfaction. Many have been criticised for poor financial management, decaying infrastructure, and reliance on national government bailouts.
If Matjhabeng succeeds in generating its own electricity, it could provide a test case for how local municipalities can take control of essential services, foster economic growth, and reduce the impact of load shedding.
Looking Ahead
The road ahead will not be without challenges licensing processes, regulatory hurdles, and funding constraints could slow progress. However, Matjhabeng’s ambition signals a growing trend: local governments are no longer content to wait for national solutions to the country’s energy crisis.
For residents of Welkom and surrounding towns, the hope is that this vision will translate into more than just political promises. If realised, it could bring light, jobs, and new opportunities to a region that has long struggled with economic stagnation.
As the countdown to October’s summit begins, all eyes will be on Matjhabeng to see whether it can indeed lead the way as South Africa’s first local municipality to generate its own electricity.
About the Author
