Exploring Opportunities in Municipal-Owned Generation: Technology, Ownership, and Operations Considerations

The global energy transition has transformed power distribution from passive energy conduits to active systems that integrate diverse energy sources. This shift requires distribution network operators to transition into distribution system operators with expanded roles, including coordinating decentralized energy resources and managing owned generation assets. In South Africa, the interest in municipal-owned power generation is fueled by the need to reduce dependency on the national grid to mitigate loadshedding, leverage advancements in distributed generation technologies, and adapt to the deregulation of power generation. This paper draws on international practices to guide South African municipalities in exploring power generation technologies, ownership models, and operational strategies. The paper's contributions include insights derived from global practices, primarily from Europe and the U.S., where municipal energy models have been successful. These lessons are adapted to fit South Africa's unique regulatory framework, resource landscape, and socio-economic conditions, offering practical guidance for municipalities to assess and implement power generation solutions. The discussion highlights the importance of proactive, strategic municipal planning to recognize and seize opportunities in generation ownership and operational management. The findings have significant implications for enhancing energy resilience, supporting economic sustainability, and ensuring the reliable operation of networks as municipalities navigate the energy transition.