News agency Bloomberg reports that Johannesburg’s municipality intends buying 500MW of electricity from independent power producers (IPP’s) to help avert ongoing power outages in South Africa’s biggest city. Johannesburg’s mayor, Mpho Phalatse, confirmed to Bloomberg that a request for proposals is awaiting approval from the National Treasury and should be issued within weeks. .
“We going to invite private companies to bid to work with government,” she said. “The kind of deals we want to put together should ensure that our revenue is protected,” and that the energy supply is stabilized, she said.
South national government recently gave municipalities permission to generate their own energy or buy it in from other sources, with Cape Town having already announced plans to issue contracts to privately owned plants.
Johannesburg is considering a range of options to bolster its supply, including entering into long-term generation partnerships with private companies, and charging them a fee to access the city’s grid to enable them to transmit and sell the electricity they produce, Phalatse said.
Author: Bryan Groenendaal