Construction begins on South Africa’s first city-run solar power plant – SPE

Cape Town becomes the first city in South Africa to own and operate its own solar power plant.

Construction is now underway on the city’s own 7 MW facility, which has the potential to scale up to 10 MW. It is located in the city of Atlantis, about 40 km north of the city.

The Lesedi Technoserve consortium is responsible for engineering, procurement and construction. Construction of the ZAR 200 million ($11.3 million) project is expected to take about a year, after which it will be connected directly to the electricity grid.

According to a statement from the Cape Town government, there are plans to roll out similar projects across the area in the coming years. It has committed to investing R39.5 billion in infrastructure between July 2024 and June 2027.

The municipal government has also issued its first battery storage tender, for the construction of a 5 MW/8 MWh battery energy storage system at the same location. Applications are open until November 20.

Both projects are part of the city’s 2050 Energy Strategy. Cape Town Mayor Geordin Hill-Lewis said the solar power plant is vital “as we face another huge price hike from Eskom.”

“The city currently uses 75% of the tariff revenue from our electricity sales to purchase Eskom power,” Hill-Lewis explains. “With the continued Eskom price escalations, the most recent of which was a requested increase of almost 44%, we simply need to diversify energy sources. These walks are not sustainable for the city or our residents and we will continue to fight against these exorbitant increases.”

Earlier this year, the City of Cape Town sought to reduce waiting times for certificates for the installation of residential solar and battery systems by launching an online solar energy authorization portal.