Cape Town – South African businessmen Mark and Brett Levy have begun construction of a R360 million (US$21.8 million) solar power plant in Ekurhuleni, Gauteng, in a project expected to boost municipal electricity supply, create jobs and reduce carbon emissions.
The 25.6-megawatt solar photovoltaic plant is being developed by BluEnergy, the energy subsidiary of Johannesburg Stock Exchange-listed Blu Label Unlimited, in partnership with IBS Crafts. According to Billionaires.Africa and Engineering News, construction officially commenced following a ground-breaking ceremony at the Springs Fresh Produce Market on 22 October 2026.
The facility will use the market’s rooftop and surrounding unused land to generate electricity for the City of Ekurhuleni under a 20-year power purchase agreement. It will connect to the Springs bulk substation, adding renewable energy to the municipality’s electricity network.
Once operational, the plant is expected to produce approximately 40 gigawatt-hours of electricity annually, equivalent to the consumption of about 6,000 average households, while avoiding an estimated 36,000 tonnes of carbon dioxide emissions each year.
Strategic expansion
BluEnergy chief executive Aaron Suckerman described the development as “a blueprint for municipal energy partnerships in South Africa”, highlighting the role of private investment in expanding public electricity infrastructure.
The project’s R360 million capital cost will be financed by the independent power producer, allowing the municipality to procure electricity without making an upfront investment in construction. More than 100 jobs are expected during the construction phase, with further employment anticipated in operations and maintenance.
South Africa’s Department of Electricity and Energy confirmed the project’s ground-breaking ceremony as part of the Ekurhuleni Independent Power Producer Programme. Electricity and Energy Minister Kgosientsho Ramokgopa and Ekurhuleni Executive Mayor Nkosindiphile Xhakaza attended the event.
The investment also marks a strategic expansion for Blu Label, which has established a substantial presence in prepaid electricity distribution and municipal revenue collection through its Cigicell business. The company’s systems operate in more than 95 municipalities across South Africa, according to Engineering News.
Revenue collection
Blu Label co-chief executive Mark Levy said the new venture would combine the group’s existing municipal services with electricity generation and trading.
“Reliable revenue collection helps support investment in new supply, while that supply improves the municipality’s ability to serve its customers,” Levy said, as quoted by Connecting Africa.
The project comes as South African municipalities seek to diversify electricity procurement and attract private capital into energy infrastructure. For Ekurhuleni, the development is intended to strengthen supply resilience while making productive use of existing municipal property.
BluEnergy’s investment therefore represents both a renewable energy expansion and a shift in Blu Label’s business model, positioning the group to participate more directly in electricity generation alongside its established distribution and revenue collection operations.
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Compiled by Betha Madhomu
