Cape Town is on course to become the first city in South Africa to both own and operate a solar power plant, marking a critical move towards energy self-sufficiency.

Currently under construction, a 7 MW solar facility in Atlantis—about 40 km north of the city—is set to expand to 10 MW in the future. The ZAR 200 million ($11.3 million) project, managed by the Lesedi Technoserve consortium, is expected to be operational within a year, supplying power directly to the municipal grid.

This venture is a cornerstone of Cape Town's broader ambitions for renewable energy. The local government has signaled plans to roll out similar projects across the region, underpinned by a ZAR 39.5 billion infrastructure investment between July 2024 and June 2027. In parallel, Cape Town has issued a tender for a 5 MW/8 MWh battery energy storage system, to be installed at the same Atlantis site. The tender, open until November 20, invites bids for what is being hailed as a groundbreaking initiative in South Africa's renewable energy landscape.

These projects form part of Cape Town’s 2050 Energy Strategy, an effort to counter soaring electricity prices driven by Eskom, the country’s state-owned power utility. Mayor Geordin Hill-Lewis underscored the urgency of the solar plant, citing Eskom's steep rate hikes, including a recent request for a 44% increase in tariffs.

“Seventy-five per cent of our electricity tariff income goes towards purchasing power from Eskom,” Hill-Lewis noted. “With these relentless price increases, it is imperative to diversify our energy sources. These hikes are unsustainable for the city and its residents, and we are determined to contest them.”

The city has also introduced a solar authorisation portal, designed to expedite the approval process for residential solar panel installations. The move is aimed at encouraging broader household adoption of renewable energy.

Through these initiatives, Cape Town is positioning itself as a national leader in clean energy, setting a precedent for other South African municipalities. The solar plant and related projects underline the city's commitment to a sustainable energy future, reducing its reliance on Eskom and traditional power sources.

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