Western Cape names candidate municipalities to be primed for direct IPP procurement
Six Western Cape municipalities, as well as the City of Cape Town, have been named by Western Cape Finance and Economic Opportunities Minister David Maynier as candidates to participate in the first phase of the province’s Municipal Energy Resilience (MER) project.
The MER initiative, which was unveiled in 2020, has been established to enable the development of municipal energy projects in the province in line with recent changes to the country’s energy regulations, empowering municipalities to purchase energy directly from independent power producers (IPPs) and/or to develop their own generation facilities.
The six municipalities identified by Maynier are Drakenstein, Mossel Bay, Overstrand,
Saldanha Bay, Stellenbosch and Swartland, while the City of Cape Town, which has already made ground-breaking steps towards procuring from IPPs, was also set to collaborate with the province on the MER scheme.
In January, the Stellenbosch Council adopted a resolution to commence with an investigation into the use and generation of alternate electricity energy supplies, in line with the changes to the Electricity Regulation Act regulations promulgated in October 2020.
The province planned to spend R48.8-million over the medium term on the MER project and would provide a further R20-million in the provincial reserves to support municipalities to take advantage of the new regulations.
The MER project was being spearheaded by the province’s Green Economy unit, within the Department of Economic Development and Tourism, working in collaboration with the Department of Local Government and the Provincial Treasury.
The candidate municipalities were identified following a “readiness evaluation” to determine which municipalities were most equipped and met the conditions for developing their own power generation projects and procuring power from IPPs.
The regulations stipulate that only municipalities “in good financial standing” would be allowed to develop or procure their own power generation and Maynier also acknowledged that IPP procurement was a complex task which municipalities might not have the policies, plans, resources, funding, or procurement expertise to implement.
“Now that the candidate municipalities have been announced, we will be confirming willingness and commitment through a Memorandum of Understanding, and then working closely with them in the first phase of the MER Project to identify pioneering energy projects and develop a road-map to roll out the projects,” Maynier said in a statement.
“This process will consider multiple pioneering renewable-energy technologies and scales, cost options, scale of investment required, location issues, risks, municipal readiness needs, infrastructure needs, timelines to get capacity onto the grid, transaction and procurement mechanisms and regulatory issues.”
Maynier added that one of the objectives of the MER project was to enable municipalities to buffer their residents and businesses from the impacts of load-shedding, which cost the Western Cape economy about R75-million per stage, per day.
“When it comes to the economy Covid-19 is a left hook, and load-shedding is a right hook, which together often results in a knock-out blow that risks compromising economic recovery,” he said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation