SA city drafts own IRP as groundwork for IPP procurement

first_imgThe City of Cape Town has contracted the Council for Scientific and Industrial Research (CSIR) to develop a mini- integrated resource plan (IRP). The document is anticipated to be completed within six to eight months. During an online forum hosted by the Italian-South African Chamber of Trade and Industries, the City of Cape Town’s energy and climate change executive director, Kadri Nassiep stated that the city is preparing an IRP. The city wanted the right to procure from IPPs as part of a broader plan to diversify its electricity supply away from Eskom, as well as to reduce its carbon footprint and electricity costs over the medium to long term, stated Nassiep. The city has been vocal in its ambition for municipalities to procure electricity directly from independent power producers (IPPs) and to secure power through small distributed energy resources. Mantashe’s section 34 ministerial determinations However, Nassiep advised that it could take up to five years before the first IPP power procured by the municipality was integrated into the municipal network. UNDP China, CCIEE launch report to facilitate low-carbon development The City of Cape Town drafts own IRP as groundwork for IPP procurement. According to the director, the City is working with National Treasury on a framework for a municipal-led renewables procurement programme. “We are proposing the establishment of a sustained, credible, planned and coordinated national procurement programme for municipalities that takes into account the national demand and supply options and constraints.” Sign up for the ESI Africa newsletter During the online forum, Nassiep pointed out that the City of Cape Town is concerned that the Section 34 announcements still lists Eskom as the sole buyer. The announcement was made on 25 September, opening the way for the procurement of 11,813MW of new electricity capacity in line with the IRP2019. Read more about:IPPsSouth Africa Considering these plans, Nassiep noted that 70% of the supply will continue to be met by Eskom in the medium term. According to the energy and climate change director, initiatives include energy efficient buildings and enhance the city’s embedded generation programme, whereby electricity can feed into the municipal grid. Currently, legal and regulatory constraints prevent municipalities from procuring electricity directly from the IPP market. As such, Nassiep stressed that power procurement agreements with large-scale IPPs remained a key objective for the City. Even though the City is concerned, Nassiep acknowledged that scope for municipal IPP procurement was likely to open up in future. This is in view of regulations on new generation capacity currently underway, which will allow municipalities to develop or procure own power generation. He added that in addition to IPP procurement, the City plans to develop its own renewable capacity through ground-mounted solar PV plants of between one and 10 megawatts. RELATED ARTICLESMORE FROM AUTHOR TAGSIPPsIRPsolar powerSouth Africa Previous articleKenya: Water and sanitation access around Lake Victoria to be upgradedNext articleGhana lands $125m to improve water supply and sanitation services Nicolette Pombo-van ZylAs the Editor of ESI Africa, my passion is on sustainability and placing African countries on the international stage. I take a keen interest in the trends shaping the power & water utility market along with the projects and local innovations making headline news. Watch my short weekly video on our YouTube channel ESIAfricaTV and speak with me on what has your attention. Finance and Policy Low carbon, solar future could increase jobs in the future – SAPVIA Therefore, in compiling this IRP, the city aims to address guiding its future procurement decisions and actions in the IPP space. AFD and Eskom commit to a competitive electricity sector BRICS Generationlast_img read more