The rise of embedded generation, rooftop solar, wheeling arrangements, battery storage and decentralised electricity markets is reshaping the traditional role of municipalities as distributors of electricity.
At the same time, local governments continue to grapple with ageing infrastructure, constrained budgets, climate-related disruptions and shortages of technical skills.
These realities formed the basis of the Municipal Forum technical fishbowl discussion at Enlit Africa 2026, where municipal leaders, utilities, technology providers and regulators explored what it will take to build resilient municipal energy systems capable of thriving in a decentralised energy future.
The consensus was that resilience is no longer simply about keeping the lights on. It is about creating technically capable, data-driven and adaptable systems that can manage increasingly complex energy networks while maintaining reliable service delivery.
A recurring theme throughout the discussion was that municipalities cannot manage what they cannot see.
As energy systems become more decentralised, municipalities need real-time visibility of electricity flows across their networks. Rooftop solar installations, battery systems, private generators and wheeling arrangements are introducing bidirectional power flows that traditional municipal systems were never designed to accommodate.
Smart metering emerged as the first and most critical building block. Modern smart meters, combined with Head-End Systems and Meter Data Management Systems (MDMS), provide the data needed to monitor consumption, generation and network performance.
However, speakers warned that simply installing smart meters is not enough. Municipalities must ensure meters comply with recognised standards such as DLMS/COSEM and IDIS to guarantee interoperability between vendors and systems. Without standardisation, municipalities risk creating fragmented infrastructures that become costly and difficult to manage over time.
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Beyond metering, municipalities need to invest in broader digital infrastructure.
Demand response programmes, energy trading platforms and future participation in day-ahead electricity markets will require municipalities to forecast demand accurately and manage distributed energy resources effectively. According to Eskom representatives, municipalities may soon be required to act as balance responsible parties, facing financial penalties when electricity demand forecasts fall outside accepted thresholds.
This creates an urgent need for advanced monitoring and control systems, including:
Together, these technologies create the visibility required to manage increasingly dynamic electricity networks.
Technology alone will not deliver resilience.
Several speakers highlighted the importance of aligning technical upgrades with institutional reforms. Municipalities must review and strengthen their policies, bylaws, supply chain frameworks, tariff structures and billing systems to support new energy market models.
Wheeling arrangements, for example, require clear regulatory processes, energy supply agreements, virtual metering frameworks, forecasting systems and settlement mechanisms. Without these governance structures, even technically capable systems may struggle to operate effectively.
The transition therefore requires municipalities to develop both technical and organisational readiness simultaneously.
The discussion also highlighted the growing role of partnerships in accelerating municipal readiness.
Municipalities do not need to build every capability internally from day one. Private-sector aggregators, technology providers, utilities, universities and development partners can help bridge immediate gaps while municipalities build internal capacity.
Third-party energy aggregators, in particular, offer a practical solution for managing distributed energy resources and addressing customer trust concerns. These partnerships can provide visibility, dispatch capability and operational expertise while municipalities develop their own long-term capabilities.
Similarly, collaboration with universities and training institutions can help develop the next generation of municipal engineers, technicians and system operators needed to manage increasingly sophisticated energy networks.
The session concluded with a clear roadmap for municipalities seeking to strengthen resilience and prepare for the decentralised energy future.
The future municipal energy system will not be defined solely by physical infrastructure. It will be defined by intelligence, visibility, interoperability and adaptability.
As municipalities across Africa navigate the transition to decentralised energy markets, the challenge is not simply deploying new technologies. It is creating the technical, institutional, and human foundations that allow those technologies to deliver value.
The message from the Municipal Forum was unmistakable: municipalities that invest now in data, standards, skills and partnerships will be best positioned to build resilient energy systems capable of supporting economic growth, climate resilience and reliable service delivery for decades to come.
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