The Johannesburg multi-party government and City Power announced that the power utility has gone out to the market to secure excess energy from alternative energy sources through short-term power purchase agreements of up to 36 months.
This positive step towards mitigating and eventually ending rolling blackouts follows commitments made at the two-day Joburg Energy Indaba convened in April 2022.
Executive Mayor Mpho Phalatse said, “The Requests for Proposal (RFP) were published on November 16, signalling a clear start for Joburg as we embark on the journey of securing reliable, sustainable and affordable energy that will keep the economy running and the lights on, thus sustaining and improving lives and livelihoods.
A city whose contribution to the national economy is almost 16%, while making up 40% of Gauteng’s economy, cannot be left without energy for hours on end. As the Joburg multi-party government, we are working so that you can work.”
City Power purchases 90% of its electricity from Eskom with the balance coming from Kelvin Power Station.
MMC for Environment and Infrastructure Service, Michael Sun said, “The launch of the first phase of the Independent Power Producer Program is the culmination of many hours of diligent work carried out by City Power; and while I am proud of the efforts thus far, this is only the beginning of the multi-party government’s determined effort to shield residents from the socioeconomic poison of rolling blackouts.”
Parallel to the short-term power purchase agreement, the city is undergoing an approval process for Ministerial Determination to procure power on a longer-term basis from IPPs.
By going out into the market now, City Power seeks to secure extra capacity from diversified energy sources, including solar, gas, battery storage, waste-to-energy, as well as the dispatchable option of gas-to-power.
City Power CEO, Tshifularo Mashava noted, “The traditional business model of procuring the bulk of our power from Eskom is no longer viable. Eskom itself has conceded to that effect. It is for this reason that we have developed a sustainable energy strategy that includes procuring power from diverse sources.”
This important step follows five months of consultations with critical stakeholders, including the National Departments of Treasury, Mineral Resources and Energy, Cooperative Governance and Traditional Affairs, the National Energy Regulator of South Africa, as well as the City of Cape Town.
The multi-party government’s commitment to the repair and rebuild of Joburg is unwavering even in the face of political tremors, and the interests of residents will always come first.
