BluEnergy, a subsidiary of JSE-listed Blu Label Unlimited, and its development partner IBS Crafts have partnered with the City of Ekurhuleni to develop a 25.6 MW solar power plant in Springs, South Africa. The project, valued at R360 million, will use the roof of the Springs Fresh Produce Market and adjacent vacant land to generate renewable electricity for the municipal power network.
The solar facility will connect directly to the Springs bulk substation and supply electricity under a 20-year power purchase agreement (PPA). Once operational, the plant is expected to generate approximately 40 GWh of renewable electricity annually, equivalent to the yearly electricity consumption of around 6,000 typical households. The project is also projected to prevent approximately 36,000 tonnes of carbon dioxide emissions every year, supporting the city’s efforts to reduce its carbon footprint and expand the use of clean energy.
The official construction launch took place during a sod-turning ceremony attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa and City of Ekurhuleni Executive Mayor Alderman Nkosindiphile Xhakaza. The development forms part of the Ekurhuleni Independent Power Producer Programme, which aims to increase private-sector participation in electricity generation and strengthen the municipality’s energy supply.
The project is among the major municipal renewable energy initiatives in South Africa, demonstrating how public authorities can collaborate with private developers to utilise existing infrastructure for clean energy generation. By converting municipal property into a solar power facility, the partnership aims to improve energy security while supporting the transition towards a more sustainable electricity system.
The R360 million investment will be entirely funded by the independent power producer, eliminating the need for upfront capital expenditure by the municipality. Under the long-term agreement, the city will purchase the electricity generated by the facility, providing a framework for renewable energy procurement without requiring direct investment in construction.
The development phase is expected to create more than 100 employment opportunities, while the plant’s operation and maintenance activities will support jobs throughout its operational life. The project is also expected to contribute to local economic development and strengthen the role of private investment in municipal infrastructure.
Company representatives highlighted the initiative’s potential to serve as a model for similar projects across South Africa. By combining private financing with public assets, the partnership seeks to diversify electricity sources, improve resilience against power supply constraints and accelerate the adoption of renewable energy across municipal networks.
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