South Africa is expanding municipal energy efficiency efforts through new funding aimed at reducing electricity consumption, lowering costs and supporting climate and infrastructure goals.

South Africa’s Deputy Minister of Electricity and Energy, Samantha Graham-Maré, has engaged 61 municipalities on the implementation of the country’s Energy Efficiency and Demand Side Management programme aimed at improving energy efficiency across municipal infrastructure.
The engagement, held virtually on Tuesday, focused on the rollout of grant funding allocated to municipalities for the 2026/27 financial year to support energy-saving initiatives in public infrastructure.
According to the Department of Electricity and Energy, a total of R256.2m has been allocated under the programme to accelerate the adoption of energy-efficient technologies and reduce electricity consumption across municipalities.
Addressing mayors, municipal managers and members of mayoral committees during the session, Graham-Maré commended municipalities taking active steps to improve energy performance in public buildings and infrastructure.
The programme targets interventions in critical areas including waterworks, public lighting systems and municipal buildings, with the objective of lowering energy costs and improving operational efficiency.
The grant forms part of a subsidy established under the Division of Revenue Act and was first introduced during the 2009/10 financial year under the former Department of Energy.
It has since continued through subsequent government restructuring, including under the Department of Mineral Resources and Energy and now the Department of Electricity and Energy.
Under the programme framework, municipalities are invited to submit proposals for funding support through periodic requests for proposals issued by the department.
The current funding cycle covers the 2024/25 to 2027/28 financial years.
Participation in the programme has continued to expand, with the number of municipalities involved increasing from 58 in the 2025/26 financial year to 61 for the 2026/27 cycle.
Speaking during the engagement, Graham-Maré said the programme remains critical to reducing energy costs for municipalities, businesses and households while supporting broader national development goals.
“This programme focuses on lowering energy costs for public entities, businesses and households, ensuring that money is returned to their pockets,” she said.
She added that the initiative also supports South Africa’s climate objectives while promoting economic growth, skills development and employment opportunities within the energy sector.
The deputy minister further highlighted the importance of Energy Performance Certificates for public and private buildings, noting that the certificates provide insights into energy consumption levels and opportunities for efficiency upgrades.
“Having an EPC is an opportunity to invest in upgrades so that the building can reduce its energy use,” she said.
The Department of Electricity and Energy disclosed that the next request for proposals under the programme will be issued in July 2026.
Municipalities interested in participating will have until September 30, 2026, to submit applications for consideration.
Government officials declared that the programme forms part of broader efforts to improve energy management, reduce pressure on the electricity system and support South Africa’s transition towards a more sustainable energy future.
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