Date set for City bid to buy from IPPs – not just Eskom

A DATE has been put aside for the City of Cape Town’s application to purchase power from independent power producers (IPPs), and not only from Eskom.

Yesterday, mayor Dan Plato announced that the hearing was set to take place on June 18.

In the application, the City council is asking the Minister of Energy and the National Energy Regulator of South Africa to allow it, and municipalities across the country, to buy energy from IPPs. The request is said to be in light of Eskom’s inability to provide for a reliable and cleaner energy supply to residents and businesses in Cape Town.

Mayco member for Energy and Climate Change, Phindile Maxiti, said the City intended to provide its customers the option of cleaner energy supply while combating rising electricity tariffs and the impact of climate change.

“Energy from fossil fuels is responsible for roughly half of the greenhouse gases released worldwide,” said Maxiti.

“This is not just a Cape Town fight. As a city, we encourage all other metros, being the growth engines of our country, to join us and participate in constructive responses to mitigate the impact of the electricity supply shortage in the commercial sector especially.

“We simply cannot afford the devastation that load shedding has had on our economy, both as a city and as a country,” Plato said.

The City said it wanted a Section 34 determination in accordance with the New Generation Capacity Regulations in the Electricity Regulation Act to allow it to procure 150MW of solar energy and 280MW of wind energy from IPPs.

Should the application be successful, the City said it would opt for a public tender and solicit proposals from IPPs. |