Johannesburg secures initial private power deals

Johannesburg, South Africa’s economic hub, has secured bids from private producers to provide 92 megawatts of electricity to help shield the city from nationwide electricity shortages.

The local government and Johannesburg utility City Power last year issued a request for short-term power purchase agreements. South Africa experiences electricity rationing on a regular basis as state-owned Eskom struggles to meet demand.

The selected bids from companies using waste-to-energy, gas-to-power and solar generation technology provide cheaper electricity than using Eskom, City Power Chief Executive Officer Tshifularo Mashava said Thursday in a statement. Johannesburg plans to add 500 megawatts of capacity by 2030. One megawatt is enough to supply around 650 households, Eskom says on its website.

Cape Town, the second-largest city in the country, also called for supply last year from independent producers and has issued a tender to build its first grid-connected solar plant.

Johannesburg plans to install rooftop solar at over 700 sites and increase the number of solar water heating systems.