Blog

Apr 08, 2024

City Power Signs Game

City Power, a major energy entity, has achieved a significant milestone in its efforts to enhance the city’s energy landscape. Through a short-term power purchase agreement (STPPP), the company has

City Power, a major energy entity, has achieved a significant milestone in its efforts to enhance the city’s energy landscape. Through a short-term power purchase agreement (STPPP), the company has secured an impressive 92 MW of power from four independent power producers (IPPs). This move is aligned with City Power’s strategic 10-point plan to combat the impacts of load-shedding and generate 500 MW of energy by 2030.

In a joint announcement by MMC for Environment and Infrastructure Services (EISD) Cllr. Jack Sekwaila, City Power Chairperson of the Board Mr. Bonolo Ramokhele, and CEO Ms. Tshifularo Mashava, the accomplishment was unveiled to the media. The collaboration involves the participation of IPPs specializing in waste-to-energy, gas-to-power, and photovoltaic (PV) solar generation. Importantly, gas-to-power IPPs introduce the capability for baseload power generation, ensuring round-the-clock energy availability.

Cllr. Jack Sekwaila highlighted, “A total of 16 bids were received, and 4 were successful with a total aggregated capacity of 92 MW, comprising technologies such as Waste to Energy, Gas to Power, and Photovoltaic (PV) / Solar Generation.” He emphasized that gas-to-power offers the city a crucial advantage of baseload generation, contributing to energy security.

This accomplishment marks City Power’s readiness to implement the Short-Term Power Purchase Agreement program for installations with capacities of 1 MW and above. The program aims to procure excess power from IPPs, thereby enhancing the city’s energy resilience. Notably, this approach contrasts with the 20-year Power Purchase Agreement, aligning with the city’s goals of energy security and sustainability.

City Power’s CEO, Ms Tshifularo Mashava, emphasized the entity’s commitment to alleviating the effects of load-shedding and underscored the economic benefits of the STPPPs. “The main benefit for these STPPPs is that the City will be procuring power from the 4 successful bidders, which are cheaper than what we currently procure from Eskom,” she explained.

In addition to the STPPPs, City Power is implementing various initiatives to combat load-shedding. These include the installation of Rooftop Photovoltaic (PV) Systems, Solar High Mast Public Lighting, and Small-Scale Embedded Generation (SSEG) programs. These proactive measures align with City Power’s mission to create a diversified energy mix and provide accessible, affordable energy to its customers.