Cape Town taking another step to reduce its reliance on Eskom

The City of Cape Town said that it is taking another step to reduce its reliance on Eskom and protect residents from rising electricity costs.

The municipality plans to introduce a waste-to-energy project at a municipal level.

This will be done through a competitive Power Purchase Agreement model, and agreements could last for up to 20 years.

The city aims to buy electricity from independent power producers that generate energy from waste, and plans to secure at least 5 megawatts of power, depending on whether the projects are commercially viable.

The City’s Mayoral Committee Member for Energy, Xanthea Limberg said that the project will only go ahead if it is cost-effective.

This means the electricity price must be lower than Eskom’s tariff, and emissions must be lower than those of Eskom’s grid.

"The city spends approximately about 70 per cent of its tariff income to buy bulk energy from Eskom. As it is our single largest input cost it is vital that we identify ways to reduce how much Eskom affects electricity prices to protect residents and businesses from rising electricity costs and the overall costs of living."