Municipalities can purchase electricity from Independent Power Producers (IPP) through the Small Scale Embedded Generation Project, subject to section 217(1) of the Constitution, read with their respective Supply Chain Management Policies.
Further, Municipalities may apply to the Minister in the Presidency for Electricity under s34(1)(d) of the ELECTRICITY REGULATION ACT 4 OF 2006, as amended, for a determination that will enable a Municipality to purchase energy from an IPP.