Skip to content





Independent power producers<h2 class="sectHeading">​​​​​​​​​​IPP Procurement Programme</h2><h4>What is an IPP?</h4><p>​​​An independent power producer (IPP) is a private-sector power producer that owns or operates facilities to generate electric power for sale to a utility, central government buyer or end user. IPPs may include facilities such as rural solar or wind energy producers, and non-energy industrial concerns generating electric power for on-site use and who may also be capable of feeding excess energy into the distribution or transmission grid system.</p><h4>The role of IPPs in Cape Town’s energy future</h4><p>It is crucial that the private sector plays a role in addressing the future electricity needs of the country. This will reduce the funding burden on Government, relieve the borrowing requirements of Eskom and introduce generation technologies that Eskom may not consider part of its core function which may play a vital role in the future electricity supply options, in particular off-grid, distributed generation, co-generation and small-scale renewable projects.</p><p>The introduction of private sector generation (IPPs) thus has multiple benefits. It will contribute greatly to the diversification of both the supply and nature of energy production, assist in the introduction of new skills and capital into the industry, and competitive performance and pricing within the energy supply sector.</p><h4>Call for IPPs to submit proposals</h4><p>In line with its carbon neutral and energy security commitments, the City of Cape Town is seeking competitive proposals from potential independent power producers for renewable energy power generation within the City boundaries. </p><p> A Request for Proposals (RFP) / tender has been developed and advertised by the City. </p><p> Preferred bidder status will be granted to IPPs who meet the initial criteria. These IPPs will be given a grid connection cost and then a final bid will be negotiated which will develop into a power purchase agreement (PPA) that will run over a 20 – 25 year period.</p> <br> <br> <span> <ul class="lrg-icon-content"><li class="lrg-icon lrg-link"><p> <b>Resources:</b></p><div class="list-links"> <a href="" target="_blank">IPP Frequently Asked Questions</a><a href="" target="_blank">City of Cape Town Hight Voltage Network Map</a><a href="" target="_blank">Open Data Portal Resources for IPPs​ </a></div></li></ul></span> <h4>IPP enquiries</h4><p> <em>Email:</em><br><a href=""><em></em></a></p><h4>​​​​​​​​​​Climate change and energy</h4><p> ​​​​​​​<a href="">Climate change</a> is a global threat which has already caused significant economic, social and environmental impacts. Much of these effects are due to high atmospheric emissions from dirty energy sources which produce greenhouse gases.<br><br> In support of the growing global momentum to tackle climate change, Cape Town, along with cities in South Africa and worldwide, has committed to achieving carbon neutrality and climate resilience by 2050. These targets can only be reached through significant transitions in urban form, energy sources, transportation and resource efficiency. Key elements are cleaning up our sources of electricity, making the built environment more efficient and the electrification of transport.</p><p>The proposed roadmap to achieve the Climate Change Strategy of the City is depicted below.</p> <figure> <img class="responsive" src="" alt="" /></figure> <br> <br> <h4>​​What is carbon neutrality? </h4><p>Carbon neutrality means introducing new technologies to clean up the fuels and activities that cause greenhouse gas emissions, while enhancing our social, economic and environmental goals. Read more about the City’s Carbon Neutral 2050 commitment.</p><h4> What the City is doing to mitigate carbon emissions</h4><p>To reduce our greenhouse gas emissions, our mitigation efforts include:</p><ul><li>driving energy efficiency in our own municipal operations</li><li>shaping regulatory and incentive mechanisms to support net zero carbon buildings</li><li>developing our own clean energy generation </li><li>procuring energy from Independent Power Producers (IPPs)</li><li>enabling small scale embedded generation (SSEG)</li><li>enabling the trading of renewable energy across its network through wheeling</li><li>waste reduction</li><li>building an efficient transport network</li></ul><p>Visit the <a href="">Climate change page </a>for further information.</p><h4> Energy efficiency</h4><p>Over the last 10 years, the City’s energy efficiency in municipal operations programme has saved over 231 GWH of electricity. This is enough electricity to power 35 clinics over 10 years and translates into 229 035 tons of avoided carbon emissions.</p><h4> The City’s energy blueprint</h4><p>Currently, the City’s energy generation and supply blueprint is as follows:</p><ul><li>purchases 99%+ of its electricity from Eskom for onward sale to consumers via the City’s grid. </li><li>44 energy intake points from Eskom</li><li>10 TWh consumption per year (10 x 1000 000 MWh) </li><li>1 650 MW combined maximum demand. Eskom supplies approximately 25% of the metro’s electricity directly to City ratepayers (grey areas)</li></ul><h2 class="sectHeading">​​​​​​​​​​Our programmes and projects</h2><h4> ​​​​City-owned Small-scale Embedded Generation (SSEG) Programme</h4><p>The Sustainable Energy Markets Department plans to take a phased approach in delivering projects identified under the City-Owned SSEG programme. The first phase of the rollout of this programme will entail the installation of the following facilities:</p><ul><li>Rooftop solar PV system at the Gugulethu Electricity Depot</li><li>The ground-mounted solar PV system at the Kraaifontein Wastewater Treatment Plant </li><li>The rooftop solar PV system at the Transport Management Centre (TMC), Goodwood</li></ul><p>For details about the private sector SSEG programme which allows customers to install their own PV system, visit the Going solar page.</p><h4> Larger scale RE projects</h4><h4> Atlantis Solar PV</h4><p>The Atlantis 10MW Solar PV (Atlantis PV) project is a grid-connected solar PV installation which will be sited in Atlantis on vacant land between the existing industrial and residential zones. The facility will be connected directly to the City’s internal electrical network. The project has completed its feasibility study, and is undergoing the required internal governance processes to obtain the approval from the City to proceed to execution. Construction on the project is anticipated during the latter half of 2022.</p><h4> Floating Solar PV Pilot Project</h4><p>The City is collaborating with partners on the investigation of the potential benefits of floating solar PV systems. A pilot project has been launched at the Kraaifontein Waste Water Treatment Works, and will be conducted over the next 12 months. See imagery below of the floating solar PV project.</p><h4> Other Projects</h4><p>We will seek to develop renewable energy generation capacity totalling 100MW over the next 8 -10 years. In this regard, the City is considering the development of multiple other sites within its boundaries, potentially suitable for power generation.</p><h4>Media releases</h4><p> <a href="">Access our media releases on independent power producers (IPP)</a>.</p> <span> <h2 class="sectHeading">​​​​​​​​​​Contact us</h2> <h4> Sustainable Energy Markets</h4> <p> <em>Email:</em><br><a href=""><em></em></a></p> <h4> Independent power producer enquiries</h4> <p> <em>Email:</em><br><a href=""><em></em></a></p> </span>GP0|#d0d09311-5046-41cd-a283-fee0035710e6;L0|#0d0d09311-5046-41cd-a283-fee0035710e6|Independent Power Producers;GTSet|#ef3a64a2-d764-44bc-9d69-3a63d3fadea1;GPP|#b3955b01-8f2f-4856-bfec-be7c68d3bbe1;GPP|#d6c1debf-2fe6-4caf-8748-a5126af00c53;GPP|#e88ff549-973f-4e3c-a46c-cfbe61bd6a24Find out about the role of independent power producers (IPPs) in Cape Town's power generation plans.0



CCT High Voltage Network Map1690097GP0|#816346e9-401b-4120-ab33-f8b010e35cd1;L0|#0816346e9-401b-4120-ab33-f8b010e35cd1|Map;GTSet|#f1e8889f-f7d7-4d5b-a3f5-af0ca2e076ea;GPP|#2ee73080-1b32-4320-889d-034e60d31b3a;GPP|#0972c695-fd19-46c4-ab5d-9601f17b780e2022-03-14T22:00:00Z
CCT Open Data Portal Resources for Independent Power Producers Presentation3379779GP0|#80bb13fd-df6b-452c-8b83-3168050363ea;L0|#080bb13fd-df6b-452c-8b83-3168050363ea|Presentation;GTSet|#f1e8889f-f7d7-4d5b-a3f5-af0ca2e076ea;GPP|#5340fe0b-73a7-472c-bef7-04e450fb5c4f;GPP|#0972c695-fd19-46c4-ab5d-9601f17b780e2022-03-14T22:00:00Z
Independent Power Producers FAQs806334GP0|#7d9df7be-4d49-4007-95e2-153219f9c783;L0|#07d9df7be-4d49-4007-95e2-153219f9c783|FAQs;GTSet|#f1e8889f-f7d7-4d5b-a3f5-af0ca2e076ea;GPP|#d8892104-ce90-493e-b813-93c488f4b1d3;GPP|#0972c695-fd19-46c4-ab5d-9601f17b780e2022-02-15T22:00:00Z



You have disabled JavaScript on your browser.
Please enable it in order to use City online applications.