City of Johannesburg Issues RFP for Short Term Power Purchase Agreements

  • The City of Johannesburg has published its Requests for Proposal (RFP) seeking to secure extra electricity capacity from diversified energy sources, including solar, gas, battery storage, waste-to-energy and the dispatchable option of gas-to-power.
  • The RFP will open the door for the city to secure excess energy from other sources through a short-term power purchase agreement of up to 36 months.
  • Register for tender HERE
  • The move is an attempt to mitigate the risks of loadshedding which has increased in intensity and freqency in South Africa. Read more 

“The traditional business model of procuring the bulk of our power from Eskom is no longer viable. Eskom itself has conceded to that effect. It is for this reason that we have developed a sustainable energy strategy that includes procuring power from diverse sources,” comments City Power CEO Tshifularo Mashava.

Joburg mayor Mpho Phalatse said that the publishing of the RFP will assist the city in securing reliable, sustainable and affordable energy capacity after Eskom’s rolling blackouts contributed to millions of rands of losses and damages.

“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,” she said.

Mashava added that the traditional business model of procuring the bulk of the city’s power from Eskom is no longer viable. “Eskom itself has conceded to that effect. It is for this reason we have developed a sustainable energy strategy that includes procuring power from diverse sources,” she said.

City Power is dependent on South Afirca’s state owned energy utility, Eskom, for 90% of its electricity with the balance coming from the privately owned Kelvin power station. Parallel to the short-term PPAs, the city is also undergoing an approval process for Ministerial Determination to procure power from independent power producers on a longer-term basis.

Author: Bryan Groenendaal

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