Independent power producers
The energy system, globally and locally, is rapidly transforming due to the impacts of technology, regulatory, and climate change. These changes are affecting every aspect of how energy is generated, distributed and used. In response to these changes, there is a global push towards increased energy efficiency and decarbonisation of the energy sector.
The combination of these factors places increased pressure on the electricity sector, including the City, to proactively plan for and rapidly adapt to these changes. As part of our response to ensure our energy security and a cleaner, more sustainable future, we are developing projects to procure energy from independent power producers (IPPs).
IPP Procurement Programme
What is an IPP?
An independent power producer (IPP) is a private-sector power producer that owns and/or operates facilities to generate electric power for sale to a utility, central government buyer or end user. IPPs finance, build, and run power plants and sell the power, usually through long-term contracts called Power Purchase Agreements (PPAs), playing a vital role in diversifying energy supply and promoting private investment in generation.
IPPs may include utility scale facilities with energy generation technologies such as solar or wind as well as small scale embedded generation systems that generate power for on-site use and may also be capable of feeding excess energy into the distribution or transmission grid system.
The role of IPPs in Cape Town’s energy future
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.
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, as well as competitive performance and pricing within the energy supply sector.
Procurement from IPPs
Procurement from IPPs forms a key part of the City’s plan for energy security, as outlined in our Energy Strategy for 2050. There are various procurement processes underway for different renewable energy technologies, with more planned for the future.
Keep an eye on our media release for updates on these projects.
If you would like to apply for future power procurement tenders that may be issued, keep an eye on the
Procurement Administration Portal.
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.
Other programmes and projects
Larger scale RE projects
Atlantis Solar PV
The City has developed a 7 MW grid-connected solar PV installation situated in Atlantis between the existing industrial and residential zones, The facility is connected directly to the City’s internal electrical network, and a 5MW battery energy storage system will be installed to provide additional flexibility.
Paardevlei
The feasibility stage for the development of a solar PV plant in Paardevlei of between 30-60MW has been completed, with a number of funding options under consideration. Execution of this project is expected to commence in 2027. Download
the pamphlet for more information on this project.
Media releases
Access our media releases on independent power producers (IPP).
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