City issues RFI for energy trading platforms

23 March 2023

Cape Town is embarking on game-changing energy security initiatives. The latest initiative aims to enhance our options to end load-shedding over time and to diversify supply by exploring how the City can participate and purchase electricity from energy trading platforms available in South Africa. 

• A Request for Information has been issued asking the market for energy trading solutions, including market operation and underwriting services, energy aggregation services and other services related to energy trading platforms. Responses may cover all three areas.
• Cape Town is the first metro in South Africa to embark on this innovative and technologically-forward initiative.
• Market players encouraged to submit responses by 19 April 2023.

'I am proud to announce that Cape Town is the first metro to undertake such a request for information.

'The City has plans to procure approximately 1 000 MW in total over the long-term. This includes 200MW procurement of embedded renewable energy via Independent Power Producers and the 500 MW Dispatchable Energy tender, which includes renewables, battery storage and gas to power aspects. The City also has a demand response tender that was issued in the energy aggregator field called the Power Heroes programme. This all forms part of its plans to protect Cape Town from up to four stages of Eskom load-shedding over time.

'It is evident that the South African electricity supply system is undergoing rapid change under the immense pressure of escalating supply shortages.

'This latest RFI seeks to test the market for innovative energy trading related services and models that can accommodate the peculiarities of local government procurement to bring on much needed additional electricity to our grid. To meet this growing challenge facing our country we will need to be innovative and think outside the box and the City intends to explore all alternatives and options, particularly ones that can provide the most benefit in the short term. This is yet another exciting step in Cape Town's new energy journey and we call on all potential partners to join us on this journey,' said the City's Mayoral Committee Member for Energy, Councillor Beverley van Reenen.

The models and services proposed through the RFI could be a key energy transition and resilience lever and may inform the planning of future energy initiatives implemented by the City.

This RFI is open to all players in the energy industry, however, the City particularly encourages responses from energy trading platforms, market operators or energy aggregators. Interested parties are invited to access the RFI on the City's tender portal and to submit a response by Wednesday, 19 April 2023.

Visit: http://web1.capetown.gov.za/web1/TenderPortal/Tender

What is an energy trading platform?

A trading platform may take the form of a digital platform which enables the facilitation of bi-lateral energy supply agreements between generators/sellers and off-takers/buyers through transmission and/or municipal distribution grids. Trading platforms often offer the choice of low-carbon and renewable energy supply, competitive and transparent rates and a variety of terms, ranging from short- to long-term, thereby providing a dynamic and flexible power trading market.

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Published by:
City of Cape Town, Media Office