City of Cape Town signs solar power deals for electricity up to 21 percent cheaper than Eskom

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 signed its first deals to buy electricity directly from independent solar producers, with the power expected to cost between 19% and 21% less than current Eskom rates.

The two 20-year agreements will bring 70MW of solar power from plants in Atlantis and Philippi as the City moves to reduce its reliance on Eskom.

The City expects to buy about R8 billion worth of electricity through the two agreements over the next two decades.

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