City Power introduces independent power producers as it battles load shedding

As the country continues to suffer from relentless load shedding, City Power on Wednesday took a major step in the battle against the power cuts.

The Johannesburg power utility attained 92MW of power from independent power producers (IPPs) through a short-term power purchase agreement (STPPP) to help address the rolling blackouts in the city.

City Power said the agreements with the IPPs will reduce its reliance on Eskom.

MMC for Environment and Infrastructure Services (EISD) Jack Sekwaila said four bidders have been given the green light to procure electricity for the city, out of the 16 that had applied. The city claims this will cost it less than procuring electricity from Eskom.

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Sekwaila said four IPPs will supply power from a variety of sources, including waste to energy, gas to power, and photovoltaic (PV) solar generation.

“The city will be procuring power from four successful bidders, cheaper than we currently procure from Eskom, which is an added advantage. The viable injection points to connect the IPPs have already been identified by City Power.”

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Solar geysers

City Power CEO Tshifularo Mashava claimed the entity has made inroads to cushion Johannesburg residents from the gruelling effects of load shedding.

“As a result, the main benefit for these STPPPs is that the City will be procuring power from the 4 successful bidders, which are cheaper than what we currently procure from Eskom. In addition, the two winning bidders are ready to connect their energy source to our grid immediately.”

The utility said it has also started with the installation 20 000 solar-heated geysers in the city as part of its energy expansion programme.

“The city is currently engaging DMRE for more units which will go a long way to address the challenges brought about by load shedding.”

ALSO READ: City Power to reduce load shedding hours for Joburg