The City of Cape Town has issued an energy trader tender that targets the procurement of 500 MW through power purchase agreements (PPAs), spanning one to ten years, from a variety of power generation technologies, including solar.

Interested parties have until May 13 to respond to this tender, aimed at diversifying the city’s energy mix and protecting it against Eskom’s loadshedding schedule and the utility’s rising electricity charges.

Cape Town spends roughly 70% of its tariff income to buy bulk energy from Eskom.

“This is the latest pioneering step we are taking to procure clean and affordable energy from the open market and to reduce our reliance on Eskom’s very expensive power,” explains Energy MMC Xanthea Limberg.

“This 500 MW tender is one of many novel interventions aligned to our landmark energy strategy and implemented under the focused Mayoral Priority Programme.

“These bold interventions underscore the city’s commitment to cutting energy costs, ensuring access to sustainably more affordable electricity to residents and businesses.”

Limberg says National Energy Regulator of South Africa-licensed energy traders and aggregators are encouraged to submit their proposals under this tender “as we look to accelerate power procurement in the open market at affordable prices”.

The tender also enables the city to participate in the South African Wholesale Electricity Market (SAWEM), as bidders may procure energy from SAWEM.

The date of first power delivery will be no more than 36 months after the signing of the PPA.

The tenderer may not procure energy or power from generating plants that the city has an exclusive and/or existing contract with, or that are part of an existing tender process.

The city will also have no role in the development of any generation plants.