Cape Town set to become South Africa's first city with a solar plant
Category Newsletter: Latest News
Cape Town is on track to become the first South African City to own and operate a solar power plant, marking a significant move toward energy independence.
The city is currently constructing a 7 MW solar plant in Atlantis, located around 40 km north of Cape Town, with plans to expand the capacity to 10 MW in the future. The project, valued at R200 million ($11.3 million), is being handled by the Lesedi Technoserve consortium, overseeing the engineering, procurement, and construction processes. The construction phase is expected to last about a year, after which the facility will connect to the city's power grid.
Alongside this solar initiative, the Cape Town government has outlined additional renewable energy projects to be rolled out in the coming years. As part of its long-term energy agenda, the city aims to invest R39.5 billion in infrastructure between July 2024 and June 2027. Additionally, Cape Town has issued a tender for its first battery energy storage system, with a capacity of 5 MW/8 MWh.
This storage system will be installed next to the solar facility, with the tender open until 20 November for interested suppliers. These projects are key components of Cape Town's 2050 Energy Strategy. Mayor Geordin Hill-Lewis emphasized the significance of the solar plant, especially given recent electricity price increases by Eskom, South Africa's main power provider.
"The city currently spends 75% of its electricity tariff revenue on buying power from Eskom," Hill-Lewis stated. "With Eskom continuing to raise prices, including a recent proposal for a nearly 44% increase, diversifying our energy sources is critical. These rising costs are unsustainable for the city and our residents, and we are determined to contest these unreasonable price hikes."
To support the shift toward renewable energy at the household level, Cape Town has launched an online solar authorization portal to simplify the approval process for installing solar panels and battery systems in homes, making it faster and encouraging more residents to adopt solar power. Through these strategic measures, Cape Town is positioning itself as a leader in renewable energy, setting an example for other municipalities in South Africa.
These new projects underscore the city's dedication to creating a sustainable energy future and reducing its dependence on traditional energy sources.
Author: Marder Properties
