| 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<br></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>Procurement from IPPs<br></h4><p>The City currently has an open tender for 500MW of dispatchable energy to be procured from IPPs - tender number 331S/2022/23. Successful bidders will enter into 10 year Power Purchase Agreements (PPAs) with the City to purchase electricity from power generation plants comprising of dispatchable technologies, which may include gas-to-power and battery storage. </p><p>We issued an embedded IPP tender for 200MW of renewable energy supply in February 2022, which closed in August 2022. </p><p>If you would like to apply for future power procurement tenders that may be issued, keep an eye on the
<a href="http://web1.capetown.gov.za/web1/TenderPortal" target="_blank">Procurement Administration Portal<i class="icon link-external"></i></a>. </p><p>To respond to a tender, you have to be registered as a vendor with the City. Once registered, you will be added to the Central Supplier Database (CSD), where you will receive updates about new tenders issued.<br></p>
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<i class="info citycard"></i></div><div class="desc"><h4>City Connect</h4><p>
<a href="https://www.capetown.gov.za/City-Connect/Register/Business-and-trade/Register-as-a-supplier">Register as a supplier</a></p></div></div></span>
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<b>Resources:</b></p><div class="list-links">
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/IPP_FAQs.pdf" target="_blank">IPP Frequently Asked Questions</a><a href="https://resource.capetown.gov.za/documentcentre/Documents/Maps%20and%20statistics/CCT_HV_network_map.pdf" target="_blank">City of Cape Town Hight Voltage Network Map</a><a href="https://resource.capetown.gov.za/documentcentre/Documents/Graphics%20and%20educational%20material/Open_data_portal_resources_for_IPPs.pdf" target="_blank">Open Data Portal Resources for IPPs </a></div></li></ul></span>
<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="https://www.capetown.gov.za/Media-and-news#k=ipp">Access our media releases on independent power producers (IPP)</a>.</p>
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<h2 class="sectHeading">Contact us</h2>
<h4> Sustainable Energy Markets</h4>
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<em>Email:</em><br><a href="mailto:sustainableenergymarkets.enquiries@capetown.gov.za"><em>sustainableenergymarkets.enquiries@capetown.gov.za</em></a></p>
<h4> Independent power producer enquiries</h4>
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<em>Email:</em><br><a href="mailto:electricityipp.enquiries@capetown.gov.za"><em>electricityipp.enquiries@capetown.gov.za</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-cfbe61bd6a24 | | | | | | | | | | | | | | | | Find out about the role of independent power producers (IPPs) in Cape Town's power generation plans. | 0 |
