Joburg moves to procure additional energy from IPPs
The City of Johannesburg has moved to buy additional generation capacity from independent power producers.
Mayor Mpho Phalatse confirmed the development on Wednesday.
The country's power utility Eskom has continued to implement varying stages of load shedding throughout the first half of the year, with more higher stages in September and the first two weeks of October.
The city believes the traditional business model of procuring the bulk of our power from Eskom is no longer viable.
Phalatse says the decision to mitigate continuous rolling blackouts was made following commitments at the two-day Joburg Energy Indaba in April.
The city currently purchases 90% of its electricity from Eskom and 10% from Kelvin Power Station.
Phalatse says the tender will enable independent power producers to sell power to the city for 36 months.
“The Requests for Proposal were published this morning, signalling a clear start for Joburg as we embark on the journey of securing reliable, sustainable, and affordable energy that will keep the economy running and the lights on, thus sustaining and improving lives and livelihoods.
“A city whose contribution to the national economy is almost 16%, while making up 40% of Gauteng’s economy, cannot be left without energy for hours on end. As the Joburg multi-party government, we are working so that you can work,” says Phalatse.
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