City of Cape Town accepts assistance with new energy plans from USAID

7th March 2022 By: Tasneem Bulbulia - Senior Contributing Editor Online

The City of Cape Town’s Energy Directorate has accepted an offer of technical assistance from the US Agency for International Development’s (USAID’s) South African Energy Programme (SAEP).

The donation will assist the city with a number of projects relating to renewable energy buying, generation and energy efficiency interventions.

This is another step in the city’s energy programme to become more sustainable and diversify the energy mix for cleaner more affordable energy for Cape Town over time, the City of Cape Town notes.

The city’s Energy MMC Councillor Beverley van Reenen welcomed the offer of assistance.

The Energy Directorate is currently embarking on a number of projects relating to renewable energy purchase and generation, and other sustainable energy interventions.

The assistance from USAID’s SAEP includes support on a prefeasibility study for a renewable energy facility at Paardevlei in Somerset West; and expert support on the city’s independent power producer (IPP) programme, including a review of its draft power purchase agreements.

Moreover, it includes tariff design for the city’s IPP programme; and financial modelling input to the 10 MW Atlantis Solar feasibility study.

Also, the technical assistance from USAID is free of charge, and the city and USAID have agreed that the approximate value of the assistance to be provided is R1.8-million.

“We are truly grateful for the USAID assistance which will go a long way in helping the city with its renewable energy purchase and generation and energy efficiency interventions.

“The assistance is free of charge and the USAID and its team of consultants have the necessary expertise. The work is also aligned to city policy and imperatives relating to energy sector reform and climate change mitigation, which remains a top priority given our country’s energy constraints and the changing energy governance landscape,” says Van Reenen.