Mayor Geordin Hill-Lewis said key policy changes have enabled power sellers to earn credits against their total municipal bill, and to go beyond that to receive cash for power fed back into the grid. Previously, sellers could only be credited against their electricity bill up to a zero balance.

As at 1 February 2024, there are currently 1 461 sellers benefitting from Cape Town’s Cash for Power scheme as part of the City’s broader plans to end load-shedding over time. Of these sellers, 869 are residential and 592 are commercial/industrial.

 

‘We are transitioning this city’s energy mix to a far more decentralised supply of reliable, cost-effective and increasingly carbon neutral energy that will come from a diverse range of suppliers. That must be the future for our country too, and Cape Town is showing the way. The most exciting part is that residents and businesses are going to play a crucial role in helping us to end load-shedding by working together as Team Cape Town. 

‘The City will buy as much solar power as households and businesses can sell to us under the Cash for Power programme, with 25 million kilowatt-hours (kWh) already bought as at 1 February this year.

'In the 2022/2023 financial year, we paid more than R10,5 million to Capetonians for their power, and in the current financial year we’ve already paid over R8,8 million. That’s a total of R19,4 million just on the feed-in tariff alone, plus a further R6,4m when including the 25c per kWh incentive we’ve added to encourage participation. 

‘I consider this some of the best money we’ve ever spent and cannot wait to see how this programme expands even more over time. Not only are we adding crucial kilowatts to our grid at a cheaper cost than Eskom’s supply, we are also putting money back in the pockets of Capetonians. That is how you democratise energy and truly put power in the hands of the people,’ said Mayor Hill-Lewis.

Municipal bills are credited automatically, with the option to apply to earn cash beyond a zero balance. Businesses have been able to earn cash for power since June 2023, with a first applications window open until 8 March for residents to now also earn cash.

‘Cash for Power payments are now being offered to existing residential customers, with the first phase of applications now open until 8 March. It is important to note that customers wishing to only offset their electricity and rates accounts, do not need to apply and will automatically be compensated on authorisation of their grid-tied SSEG system with feed-in. If customers are interested to go above and beyond this, they can register and get cash for their power – where any remaining credit will accumulate until it reaches a certain amount and then the City will pay you out,’ said Councillor Van Reenen.

Overall, Cape Town is planning to add up to one gigawatt of independent power supply to end load-shedding in the city over time, with the first 650MW of this within five years, including enough to protect against four Eskom load-shedding stages by 2026. 

 

Short-term load-shedding mitigation up to 2026 will be achieved largely through a mix of Steenbras Hydro Plant (1 – 2 stages); 500MW of dispatchable energy (up to four stages from 06:00 – 22:00 daily where possible); and demand management programmes such as Power Heroes and Large Power Users (LPUs) curtailment.

a) UNDER WAY: Large Power Users (LPUs) curtailment

b) NEWLY LAUNCHED: Power Heroes: a voluntary programme for households and small commercial customers that enables remote switching of power-hungry appliances such as geysers and pool pumps.

• NEW: IPP 3 tender issued: The total capacities envisaged 300 MW of dispatchable/ reserve power capacity and 200 MW of self-dispatchable power capacity. The contract period is three years, and is subject to a Section 33 process and the closing date for tender submissions is 8 April 2024. 

• UNDER WAY: Embedded IPP renewable energy (200MW) – with the goal to diversify electricity suppliers for more cost-effective electricity

• UNDER WAY: Dispatchable IPP Programme (up to 500MW) – a key load-shedding mitigation mechanism, with 10-year power contracts for dispatchable power plants 

• UNDER WAY: Wheeling (up to 350MW) – a City-enabled means of third parties selling electricity to each other using existing grid infrastructure

• DONE: Private Small-Scale Embedded Generation (up to 100 MW) mechanism – Residential and commercial customers are enabled to generate electricity for their own use and be credited for excess generation 

• UNDER WAY: City-owned SSEG (up to 20MW) from the Atlantis plant (7MW) and solar PV at City facilities (13MW)

Cash for Power applications are open for all residential customers on the home user tariff with an approved grid-tied SSEG system and bi-directional AMI meter to feed power back into the grid. For more information, visit: https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/apply-to-sell-surplus-sseg-energy-to-the-city 

City of Cape Town’s Supplier Database registration: https://www.capetown.gov.za/City-Connect/Register/Business-and-trade/Register-as-a-supplier

National Treasury Web Based Central Supplier Database (CSD) registration: https://secure.csd.gov.za

Any submissions received after the first round closes on 8 March 2024 will be kept for the next round, with the date to be announced.

As per Supply Chain rules, successful Cash for Power sellers will contract with the City for a period of three years after appointment.

View the Cape Town Energy Strategy here: https://bit.ly/Energy_Strategy