As the first round of procurement opened to the private sector, more than 100 stakeholders of the independent power producer (IPP) sector in Cape Town met with the City of Cape Town at the Cape Town Stadium on Thursday. This was to engage on energy security to bring an end to loadshedding in the City.
IPPs may include facilities such as rural solar or wind energy producers, and non-energy industrial concerns generating electric power for on-site use and who may also be capable of feeding excess energy into the distribution or transmission grid system.
Speaking at the event Cape Town Mayor Geordin Hill-Lewis laid out how private sector innovation will be key to securing Cape Town’s energy future, both through increasing the reliability of electricity supply to end load-shedding and making electricity more affordable for Capetonians and their businesses. Hill-Lewis was joined by the Mayco member for energy, Beverley van Reenen, and the City’s executive director for energy, Kadri Nassiep, who both outlined the City’s medium to long-term vision for an independently-powered, energy secure Cape Town.
The tender process for power supply from IPPs is currently ongoing after an earlier call for IPPs to submit competitive proposals for renewable energy power generation within the City boundaries.
These IPPs will be given a grid connection cost and then a final bid will be negotiated which will develop into a power purchase agreement (PPA) that will run over a 20 to 25-year period.
In her remarks Van Reenen said that the future of Cape Town will be powered through clean renewable energy sources.
“Through today’s discussions, we have established that. Furthermore, we have had positive engagements, unpacking the City’s goals and targets and we have set out our vision for a loadshedding free Cape Town, over time. You all here, in your various capacities, hold the key to that vision. We all have a part to play in ending energy poverty and protecting our environment for future generations,” Van Reenen said.
Stakeholders were given an opportunity to consult a panel of officials from the City, and also offer their ideas about what the City could do to reach its goal of reliable, affordable and clean energy as quickly and sustainably as possible.
“I look forward to continuing a dialogue with the sector as we work together towards energy security in Cape Town, harnessing the private sector’s innovation and efficiency for public good,” said Geordin Hill-Lewis.
For more about the IPP project email electricityipp.enquiries@capetown.gov.za.
