Page 16 - Energize January 2021
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NEWS
City powers up its own future with comes with price certainty, while wind and
solar power is already cheaper than the cost
increased uptake from IPPs of Eskom electricity,” elaborates
Schneeberger.
“Cape Town will increasingly be able to
shape the power curve by setting tariffs for
ape Town is set to take advantage of the recent Department of Energy’s decision to allow both producers and users,” argues Brian
major cities to purchase electricity directly from Independent Power Producers (IPPs). Homann, Renewables Lead at AECOM. He
CThe decision is anticipated to be a major boost for the renewable energy and IPP sector. “A highlights the example that power could be
lot of hard work still lies ahead to implement this policy, but it is a major step in securing a more expensive when production is low and
better energy future for the city,” comments Barto van der Merwe, Buildings Director at usage is high, such as during the evening
infrastructure consulting firm AECOM. peak. It could be cheaper when production
Although Cape Town only plans to procure 300 MW of renewable energy in three to five is high and usage is low, such as over a
years’ time, the implications of the announcement will immediately have a major positive impact sunny weekend when factories are closed
on its economy. IPPs can also take encouragement from the city’s compiling of a mini Integrated but solar power can still be generated. “Such
Resource Plan (IRP) as recently announced, indicating that a longerterm plan for greater self a scenario is dependent on future pricing
reliance is on the cards, notes Van der Merwe. structure decisions. This will drive
Independent energy sources contribute to decreased load shedding and increased energy investment in smart grid control solutions
security. “This is an important consideration for AECOM’s international clients when it comes to and storage, and gas peaking plants, as well
investment decisions. As such, companies need to carefully weigh up their options,” notes as allowing more renewables in the energy
Werner Schneeberger, an executive at AECOM. He points to the fact that Cape Town’s Steenbras mix,” reveals Homann.
pumped storage scheme, combined with rooftop solar plants, already plays a significant role in Businesses also need clean energy to
reducing the severity of load shedding in the city. meet their sustainability targets in terms of
“Areas supplied by the city in this fashion are likely to become business hubs. Another factor greenhouse gas (GHG) emissions, adds van
to take into consideration is that Eskom tariffs have tripled over the last decade, with future der Merwe. “As Cape Town’s electricity grid
price uncertainty a potential deterrent to investment. Power purchased from IPPs automatically becomes cleaner and increasingly powered
by wind and solar energy, forwardlooking
businesses will want to be supplied by the
city.” This is because transport is a major
GHG contributor, with companies
increasingly opting for electric vehicles
(EVs). A cleaner grid will increase the
uptake of EVs in Cape Town, leading to
reduced emissions, a cleaner and healthier
city and ultimately, a more attractive place
for business, he points out.
“Furthermore, any reduction of energy
demand on the national grid on the part of
major cities, theoretically has the potential
for Eskom to focus on economic
development or rekindling the country’s
industrial capacity, thus stimulating much
needed growth. AECOM is pleased to see
that Cape Town is taking a lead in actively
implementing its energy and sustainability
strategies. We welcome and support this
positive development of greater self
sufficiency in terms of energy supply,”
concludes Van der Merwe. n
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