MEDIA STATEMENT
TO ALL MEDIA/NEWS EDITORS
THE INTRODUCTION OF THE ENERGY SAVINGS PERFORMANCE CONTRACTING MODEL WILL STRENGTHEN ENERGY EFFICIENCY MEASURES IN MUNICIPALITIES
17 May 2026
The Deputy Minister of Electricity and Energy, Samantha Graham-Maré, recently introduced the Energy Savings Performance Contracting (ESPC) model to sixty-one municipalities during an online workshop. This model, which forms part of the grant aimed at the implementation of Energy Efficiency Demand Side Management (EEDSM), seeks to sustain and scale up energy efficiency measures in municipalities.
During the engagement with Mayors, Members of the Mayoral Committee (MMC) and Municipal Managers, the Deputy Minister stated that the programme was initiated during the 2025/26 financial year with a budget of R 31 000 000 for nine municipalities from the EEDSM grant. This allocation from the grant for the 2026/27 financial year has now increased to R 100 000 000 and will be shared among twenty-one municipalities across the nine provinces.
The allocated grant is to further support municipalities in accelerating the adoption of energy-efficient technologies and demand-side management measures to reduce electricity consumption and improve energy efficiency. Interventions are specifically designed to build Energy Efficiency through solar PV rooftops, Renewable Energy, and System Optimisation in Water Works, and High-efficiency public lighting with security and dimming features.
Deputy Minister Graham-Maré said: “Municipalities are under increasing pressure. We have a duty to assist and intervene where we can. Part of our collaborative responsibility is to ease the burden on the local sphere of government, which is at the coalface of service delivery. This model empowers municipalities to retrofit their infrastructure, build capacity and raise significant awareness about the importance of being energy efficient. These efforts and interventions will ensure that they can significantly save on their energy costs and use the saved funds for various other services in their space.”
For municipalities to participate in the ESPC model, the following conditions have to be adhered to:
15% portion of the grant to support the ESPC Project,
The development of an ESPC investment project pipeline,
Developing an EEDSM/ESPC Model financing strategy and instrument,
Promote localisation & technology transfer and creation of jobs, and
Spend at least 50% of the grant as a capital subsidy to implement the ESPC model.
Municipalities will soon be able to submit proposals for consideration under the EEDSM programme’s grant funding. The EEDSM Request for Proposals for the next three financial years will be issued in July 2026. Municipalities interested in participating in this initiative will have until 30 September 2026 to make their submissions.
All queries regarding the municipal EEDSM programme may be directed to Maphuti Legodi, Programme Manager: Energy Efficiency & Demand Side Management, on 012 406 7598 or maphuti.legodi@dee.gov.za
For media enquiries:
Marcellino Martin, Media Liaison in the Office of the Deputy Minister of Electricity and Energy on 082 721 3362/ Marcellino.martin@dee.gov.za
Tsakane Khambane, Spokesperson in the Ministry of Electricity and Energy on 082 084 5566 /
ISSUED BY THE DEPARTMENT OF ELECTRICITY AND ENERGY OF THE REPUBLIC OF SOUTH AFRICA