Cape Town Announces 500 MW Power Purchase Tender

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To address the ongoing energy crisis and protect its residents from loadshedding, Cape Town has issued a 500 MW dispatchable energy tender aimed at providing protection from the first four stages of loadshedding within the next three years.

The competitive tender includes power from various dispatchable generation technologies, such as gas-to-power and battery storage. The tender offers the potential for multiple bidders to be awarded contracts, with successful bidders to be granted a ten-year power purchase agreement with the City of Cape Town. 

Power sources do not need to be located in a city-supply area.

Launched by Cape Town Mayor, Geordin Hill-Lewis, the tender represents efforts by the municipality to utilize independent power producers to scale up energy security.

Under the larger ‘Building Hope’ Budget tabled for public comment on March 29 – a R2.3 billion action plan to end loadshedding within three years – the tender is expected to entice a suite of power players and financiers.

“We encourage the market to take note and participate. The city is on track to offer protection from the first four stages of loadshedding within the next three years,” he stated.

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Charné Hollands

Charné Hollands

Charné Hollands is the Deputy Editor at Energy Capital & Power. She holds a Higher Certificate in Professional Photography and Masters in Media Studies from the University of Cape Town. Charné writes content for ECP's website and events as well as co-authored African Energy Chamber: Road to Recovery.

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