The City of Cape Town (CoCT) intends to procure bulk electricity, depending on the commercial viability, of at least 5 MWac from waste-to-energy independent power producers (IPPs) through power purchase agreements (PPAs) for up to 20 years.

For the contract to be commercially viable, the city says that the energy pricing must be lower than Eskom’s equivalent tariff, and emissions must also be lower than Eskom’s grid emissions factor.

Tender submissions close on May 29.

According to the city, one or multiple PPAs may be awarded, depending on the  financial and technical feasibility.

All green attributes, including renewable-energy certificates and carbon credits, will be transferred to the city.

IPPs may use existing or new-build power plants, but must make use of proven, utility-scale waste-to-energy technology. The plants may also be paired with a battery energy storage system.

IPPs must source their own feedstock. Cape Town says it does not facilitate waste contracts or fuel supply agreements.

IPPs are also responsible for all by‑products, effluent and waste disposal, in compliance with legislation and city by‑laws.

Plants may be located anywhere in South Africa, adds CoCT, but the IPPs must cover all connection and wheeling costs (where applicable), and they must adhere to all grid connection standards.

“In line with our energy strategy and Mayor Geordin Hill-Lewis’s Mayoral Priority Programme for Energy, the city continues to take decisive steps to reduce our reliance on Eskom and to shield residents from rising electricity costs,” says Energy MMC Xanthea Limberg.

“The city spends approximately 70% of its tariff income to buy bulk energy from Eskom.

“As it is our single largest input cost, it is vital that we identify ways to reduce how much Eskom affects electricity prices, to protect residents and businesses from rising electricity costs and the overall cost of living.”

Limberg says CoCT views waste‑to‑energy projects as an important part of its diversified power procurement strategy, as it will bring “new, cleaner and more reliable options into the city’s energy mix”.

“This tender links two critical urban systems – waste management and electricity generation – creating a circular economy, lower‑emissions solution for Cape Town.

“It opens the municipal grid to new technologies beyond traditional renewables such as solar PV and wind,” notes Limberg.

“We are in exciting times in Cape Town as our energy programme is starting to deliver tangible results, setting us up for the shared energy future we are creating.”