Sign up with GoogleBelow was shared by our counselor on our whatsapp group :
CITY OF CAPE TOWN
25 JULY 2022
STATEMENT BY CAPE TOWN MAYOR, GEORDIN HILL-LEWIS
Mayor announces policy shift allowing commercial and industrial
electricity generators to sell energy to the City
High resolution photographs are available
here: https://www.dropbox.com/sh/9hxjvnhjbd7cagr/AAD4o7zrizbO8uqSTvdNyYera
?dl=0
This morning, I met with over 50 members of Cape Town’s business community
to announce two important steps in the City’s journey to ending loadshedding and becoming energy secure.
The City of Cape Town will now pay cash to small-scale embedded
generation (SSEG) customers for the excess energy they produce and sell
back to the City. In the past, these customers could only be compensated by
means of credits on their municipal bills.
In addition, these customers will now be permitted to sell more electricity to
the City than they use. In the past, generating customers were required to be
net consumers of the City’s energy; they will now be incentivised to become
net producers. In this way, our residents will become crucial partners in
ending load-shedding in Cape Town.
While these two policy changes will only apply to commercial and industrial
customers at first, the City intends to broaden this policy to all generating
customers over time, including those with small residential solar PV
installations. This step-by-step transition will ensure that we are able to get the
largest projects — with the greatest capacity to positively impact on loadshedding — online first, and address any teething issues as they arise without
putting strain on the City’s supply network.
Load-shedding is the single-biggest economic issue facing South Africa.
Eskom’s Stage 6 loadshedding this month cost the national economy R4,2
billion per day. This lost value not only destroys businesses but has put the
country on track to lose even more than the 125 000 jobs that load-shedding
destroyed in 2019 alone.
We have a clear plan to fix this problem in Cape Town. The bid window for
our first procurement of renewable power closed last month and we are in
the process of considering the bids and awarding the contracts. However,
the process required by legislation in respect of these contracts is highly
complex and time-consuming, which means it will take several years to make
a serious impact on load-shedding in the city.
SSEG customers — particularly commercial and industrial generators with
significant amounts of roof space available for solar PV generation — are a
source of energy for the City that can be brought online even before IPPs.
Finally, it must be reemphasised that energy security is not only about
achieving a reliable supply of electricity. Energy must also be affordable for
residents and businesses alike. Eskom’s coal-produced electricity, as well as
the cost of its immense debt, is making South African energy increasingly
unaffordable. The staggering 32,7% tariff envisaged by Eskom for next year
confirms this.
Capetonians desperately need the City to reduce its reliance on Eskom, and
today’s announcement is yet another step in that direction. I look forward to
seeing the interest from the market as we move to buy electricity from our
residents.
Caption: Mayor Geordin Hill-Lewis addresses the business community about
SSEG policy changes
End
Issued by: Media Office, City of Cape Town
Media enquiries: Greg Wagner, Spokesperson to the Mayor, Cell: 072 623
4499, Email:Greg.wagner@capetown.gov.za (please always
copy media.account@capetown.gov.za)
CITY OF CAPE TOWN
25 JULY 2022
STATEMENT BY CAPE TOWN MAYOR, GEORDIN HILL-LEWIS
Mayor announces policy shift allowing commercial and industrial
electricity generators to sell energy to the City
High resolution photographs are available
here: https://www.dropbox.com/sh/9hxjvnhjbd7cagr/AAD4o7zrizbO8uqSTvdNyYera
?dl=0
This morning, I met with over 50 members of Cape Town’s business community
to announce two important steps in the City’s journey to ending loadshedding and becoming energy secure.
The City of Cape Town will now pay cash to small-scale embedded
generation (SSEG) customers for the excess energy they produce and sell
back to the City. In the past, these customers could only be compensated by
means of credits on their municipal bills.
In addition, these customers will now be permitted to sell more electricity to
the City than they use. In the past, generating customers were required to be
net consumers of the City’s energy; they will now be incentivised to become
net producers. In this way, our residents will become crucial partners in
ending load-shedding in Cape Town.
While these two policy changes will only apply to commercial and industrial
customers at first, the City intends to broaden this policy to all generating
customers over time, including those with small residential solar PV
installations. This step-by-step transition will ensure that we are able to get the
largest projects — with the greatest capacity to positively impact on loadshedding — online first, and address any teething issues as they arise without
putting strain on the City’s supply network.
Load-shedding is the single-biggest economic issue facing South Africa.
Eskom’s Stage 6 loadshedding this month cost the national economy R4,2
billion per day. This lost value not only destroys businesses but has put the
country on track to lose even more than the 125 000 jobs that load-shedding
destroyed in 2019 alone.
We have a clear plan to fix this problem in Cape Town. The bid window for
our first procurement of renewable power closed last month and we are in
the process of considering the bids and awarding the contracts. However,
the process required by legislation in respect of these contracts is highly
complex and time-consuming, which means it will take several years to make
a serious impact on load-shedding in the city.
SSEG customers — particularly commercial and industrial generators with
significant amounts of roof space available for solar PV generation — are a
source of energy for the City that can be brought online even before IPPs.
Finally, it must be reemphasised that energy security is not only about
achieving a reliable supply of electricity. Energy must also be affordable for
residents and businesses alike. Eskom’s coal-produced electricity, as well as
the cost of its immense debt, is making South African energy increasingly
unaffordable. The staggering 32,7% tariff envisaged by Eskom for next year
confirms this.
Capetonians desperately need the City to reduce its reliance on Eskom, and
today’s announcement is yet another step in that direction. I look forward to
seeing the interest from the market as we move to buy electricity from our
residents.
Caption: Mayor Geordin Hill-Lewis addresses the business community about
SSEG policy changes
End
Issued by: Media Office, City of Cape Town
Media enquiries: Greg Wagner, Spokesperson to the Mayor, Cell: 072 623
4499, Email:Greg.wagner@capetown.gov.za (please always
copy media.account@capetown.gov.za)
