City’s bid to buy renewable energy directly from independent power producers

City’s bid to buy renewable energy directly from independent power producers

The Cape Chamber has welcomed the attempt by the City of Cape Town to speed up its bid to be allowed to buy renewable energy directly from independent power producers.

At present the matter between the City, the Department of Energy and NERSA is before the Gauteng High Court but the City now wants it to be treated as urgent.

The recent load shedding and the threat of more to come makes it essential for all cities and the economy as a whole to have access to additional sources of electricity.

New solar and wind power would cost about 80 cents a unit which is more expensive than the wholesale price the City pays Eskom for electricity but with the kind of tariff increases being demanded, 80 cents a unit will be a very good price in a few years time.

Renewable energy will be entirely financed by the independent power producers and will not affect the City or Eskom’s borrowings.

The plan is to limit the renewable energy projects to a total of 400 MW. This is a relatively small amount of power when compared to the 1 800 MW supplied by the Koeberg nuclear power station.

In addition, the City buys a small amount of electricity from roof-top solar projects but this supply is expected to increase as Eskom tariffs rise by double digit percentages every year.

It is essential to improve energy security in the Cape and independent power producers could make a major contribution. There is no doubt that wind and solar power will play a big part in the future and we need to get going as soon as possible. We cannot stand by and do nothing while we wait for the massive Eskom problems to be resolved.

Janine Myburgh
President of the Cape Chamber