Municipalities

Local government and municipalities are constantly under pressure as far as the supply and demand of power is concerned. By entering into a Use of Systems Agreement with POWERX, municipalities can manage their power requirements better, enable us to provide green energy to their consumers, ensure sustainable growth in their municipalities and protect their revenues.

Municipalities are key for POWERX to establish a national reach for customers. Our approach, having proven the model in Nelson Mandela Bay Municipality (NMBM), is to now replicate this concept throughout the country. Due to the ever increasing electricity prices, embedded generation is becoming more and more a prolific answer to power users resulting in a progressive loss of income for Municipalities. The POWERX model always pays the Municipality a so called “wires” or “Use of Systems Charge” which keeps the Municipality in a revenue neutral position.

Our focus is on establishing Municipalities as GREEN NODES as follows:

  • Stimulating power generation within the municipal Network and thereby assisting in stabilizing the grid and reducing the Notified Maximum Demand for that Municipality
  • Unlock Developmental Projects that are currently energy constrained
  • Stimulate LED and job creation as well as local beneficiation
  • Create an acceptable national model where Municipalities are guaranteed a fixed income stream as a “wires/system charge,” thereby enabling accurate forecasting and planning for their service delivery needs 
  • POWERX provides a Balance Sheet to IPPs to make their projects bankable. As such Municipalities that themselves are not bankable can rely on POWERX to unlock the financing for the development of power plants.