Electricity Upgrade: CoJ Allocates R4.6bn for Infrastructure Improvements

Electricity upgrade efforts are at the forefront of the City of Johannesburg’s new budget priorities, as Finance MMC Margaret Arnolds announced a R4.6 billion allocation aimed at overhauling the metro’s electricity infrastructure. The announcement was made on Wednesday during her annual budget speech to the Johannesburg City Council, where she highlighted the urgent need to modernise the city’s aging and strained energy systems.

Arnolds said the funding will be directed toward City Power, Johannesburg’s electricity utility, and will focus on four key areas aimed at stabilising, modernising, and expanding the city’s energy grid.

“The budget allocates R4.6 billion to City Power over the next three years to fast-track the following four categories: stabilising the grid to prevent collapse, strengthening the network to improve efficiency, expanding the grid to meet growing demand, and ensuring revenue enhancement while reducing technical losses,” she explained.

She noted that Johannesburg, like many major cities, is under growing pressure to provide reliable electricity upgrade in the face of ageing infrastructure, population growth, and the increasing strain of urbanisation. Frequent outages, network faults, and load reduction measures have severely affected both residential and commercial consumers, further underlining the need for urgent intervention.

“This allocation is not just about keeping the lights on,” Arnolds added. “It is about modernising our city’s power infrastructure to support economic growth, improve quality of life, and lay the foundation for a more energy-secure future.”

The funds will be used to implement a series of infrastructure electricity upgrade – including the replacement of obsolete equipment, the reinforcement of substations and transmission lines, and the rollout of smart grid technologies. Part of the plan also includes measures to reduce illegal connections and electricity theft, which contribute significantly to technical and non-technical losses within the system.

City Power CEO Tshifularo Mashava welcomed the funding announcement, stating that the utility has already identified key areas for urgent intervention. “This investment will allow us to fast-track projects that have been in the pipeline and implement innovative solutions to strengthen our grid,” Mashava said. “Our priority is to build a network that is stable, sustainable, and able to support the city’s growing energy demands.”

City Power has also indicated that part of the budget will be used to support alternative energy projects in line with the city’s broader energy diversification strategy. These may include solar and battery storage solutions for municipal buildings, schools, and clinics, aimed at reducing dependence on Eskom and promoting energy resilience during peak demand periods or load shedding.

Community organisations and energy analysts have cautiously welcomed the announcement but warned that transparency, efficiency, and accountability in the use of the funds will be essential to ensure meaningful outcomes. “Budget commitments are important, but implementation is key,” said energy analyst Thabo Mokoena. “The city must ensure that every rand spent results in tangible improvements in service delivery and grid performance.”

Johannesburg residents have long voiced frustration over unreliable electricity supply, with repeated outages disrupting daily life, damaging appliances, and affecting small businesses. Many hope that the R4.6 billion investment will mark a turning point in how the city manages its electricity upgrade infrastructure.

In her closing remarks, Arnolds stressed that the electricity upgrade is part of a broader vision to make Johannesburg a more liveable, inclusive, and economically vibrant city. “Energy is the lifeblood of our city,” she said. “With this investment, we are not only addressing today’s problems—we are building for tomorrow.”

As the city prepares to roll out its infrastructure improvement programme, residents and businesses alike will be watching closely to see how effectively the funding is used to deliver a more stable and secure electricity upgrade supply.