Local governments are turning to commercial suppliers to assist companies and residences survive worst energy crisis in South Africa.
President Cyril Ramaphosa announced a state of emergency over the energy crisis, which has shaved 2 percentage points off economic growth this year.
According to Executive Director of Energy Kadri Nassiep, Cape Town authorities want to get up to 500 megawatts (MW) from private power providers until 2026. This is to cover nearly a third of the city’s annual 1,500 to 1,800 megawatt demands (MW).
They’ll also pay homeowners to save energy during peak hours.
“Our aim is to fill the revenue gap that Eskom cannot cover,” Cape Town Mayor Geordin Hill-Lewis told Reuters. Debt-ridden Eskom announced earlier this month it could only satisfy 56.6% of the country’s electricity demands in fiscal 2022/23.
Delays in building new coal-fired power plants and looser rules for renewable energy providers have caused the energy crisis to persist for years.
INDEPENDENCE FROM ESKOM
Nassiep said Cape Town is working toward Eskom-free electricity after 2030.
And announced a tender for 200 MW of solar energy last year. As it anticipates another for 300 MW of battery storage in the coming weeks.
Unstable political alliances are delaying bids in other cities, including Johannesburg.
In November, Johannesburg’s primary electric utility City Power sought a 36-month purchase agreement from private enterprises to add 500 MW to the city’s electrical infrastructure, Mayor Mpho Phalatse stated in January.
In the 2020/2021 annual report, Ekurhuleni secured 700 MW contracts with 46 commercial power providers.
Hill-Lewis said Cape Town will change its energy policy to let houses and solar businesses sell surplus to the city.
However challenges exist.
Solar panels cost R60,000 ($3,372) to R250,000. However, rich firms and residents in South Africa may afford them. Cape Town requires R12,000 electricity meters to sell extra energy.
Solar panels are too expensive for our tiny company. “We work together,” explained Cape Town seamstress Faieza Caswell.
