Johannesburg launches short-term private power tender

Johannesburg, South Africa’s economic hub and its richest city, is seeking electricity supply from private generators to reduce the amount of scheduled power outages.

The local government and City Power issued a request for short-term power purchase agreements of as long as 36 months, according to a statement.

“A city whose contribution to the national economy is almost 16%, while making up 40% of Gauteng’s economy, cannot be left without energy for hours on end,” said Johannesburg Mayor Mpho Phalatse, referring to the province where the metropolis is located.

Eskom Holdings SOC Ltd., the embattled state power utility, has imposed 160 days of power outages — locally known as load-shedding — in Africa’s most-industrialised nation this year.

That has municipalities scrambling for alternatives. Cape Town, the second-largest city in the country, earlier this year called for supply from independent producers and has issued a tender to build its first grid-connected solar plant.

City Power buys 90% of its electricity from Eskom, with the balance coming from Kelvin Power Station.

Now read: Eskom changes load-shedding schedule

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Johannesburg launches short-term private power tender