Cape Town signs R8bn solar deals to cut Eskom reliance - IOL

Cape Town has signed two 20-year power purchase agreements to buy 70MW of solar power from independent producers in Atlantis and Philippi. The city says the agreements will provide power at rates below current Eskom prices

The City of Cape Town has announced that it has signed its first power purchase agreements with independent solar producers.

The agreements will provide the city with 70MW of solar power from plants in Atlantis and Philippi over the next 20 years.

The city said the deals will help reduce its reliance on Eskom and save between 19% and 21% compared with current Eskom rates.

In a statement released to the media on Monday, Mayor Geordin Hill-Lewis said the agreements were an important step towards securing cheaper and more reliable electricity for residents.

‘Families cannot be expected to absorb endless Eskom price increases forever – that’s why we are working to end reliance on expensive Eskom power to make electricity more affordable for Capetonians,' Geordin Hill said.

"We are pleased to have sealed the first two power purchase agreements with solar plants here in Cape Town – a first for any South African city - with plans to buy up to 700MW of independent power over time".

He said the city plans to expand its independent power programme, with a long-term target of buying up to 700MW from private producers.

The two agreements are for 30MW from JEMPEC's solar plant in Atlantis and 40MW from Make A Difference LLC's solar plant in Philippi.

The city expects to procure about R8 billion worth of electricity through the two agreements over the 20-year period.

The agreements will also have price increases linked to the Consumer Price Index (CPI), instead of Eskom's future price increases.

Alderman Xanthea Limberg, Mayoral Committee Member for Energy, said "the agreements will also avoid nearly two million tonnes of carbon emissions, earning the City carbon credits, which can be traded on the open market to generate funds for more infrastructure investment".

Cape Town has already generated R36m in carbon credits via municipal waste-to-energy initiatives that reduce gas emissions at landfill sites.