CAPE TOWN - Cape Town has become the first South African city to secure power directly on the open market, at rates cheaper than Eskom.
The City has finalised two major 20-year power purchase agreements, locking in 70 megawatts of solar electricity from plants in Atlantis and Philippi.
The deals are part of a broader competitive bidding process to source up to 200 megawatts of independent power.
According to the City, the agreements will save the metro between 19 and 21%, compared to current Eskom tariffs.
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Mayor Geordin Hill-Lewis hailed this move as essential to protecting residents against volatile price hikes.
"‘Families cannot be expected to absorb endless Eskom price increases forever, that’s 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 power purchase agreements with solar plants here in Cape Town, a first for any South African city, with plans to buy up to 700MW of independent power over time,’ said Hill-Lewis.