Cape Town signs two agreements to buy power at below Eskom rates

The City of Cape Town (CoCT) has signed two purchase agreements for a combined 70 MW of power, with more to follow in the coming months under a competitive tendering process for delivery of up to 200 MW of power.

The 20-year power purchase agreements (PPAs) are with solar plants that will be connected to the city’s grid in Atlantis (30 MW from Jempec), and Philippi (40 MW from Make A Difference).

Mayor Geordin Hill-Lewis says the city aims to buy up to 200 MW from independent producers at rates cheaper than that of Eskom.

“Families cannot be expected to absorb endless Eskom price increases forever, which is why we are working to end reliance on expensive Eskom power to make electricity more affordable for Capetonians.

“We are pleased to have sealed the first two PPAs with solar plants here in Cape Town – a first for any South African city.”