KEY POINTS
- Cape Town plans a waste-to-energy project to reduce reliance on Eskom and stabilise electricity costs.
- The city will procure at least 5MW of power through long-term PPAs lasting up to 20 years.
- The initiative will only proceed if electricity is cheaper than Eskom’s tariffs and produces lower emissions.
The City of Cape Town has announced another step toward reducing its reliance on Eskom as it seeks to shield residents and businesses from rising electricity prices. The municipality plans to introduce a waste-to-energy initiative that will allow it to purchase power generated from waste by independent producers.
The project will be implemented through a competitive Power Purchase Agreement (PPA) model, with contracts expected to run for up to 20 years. Through the initiative, the city intends to procure at least five megawatts of electricity, depending on the commercial viability of proposed projects.
Cost-effectiveness and lower emissions key conditions
The city emphasised that the programme will only proceed if it proves financially beneficial. According to Mayoral Committee Member for Energy, Xanthea Limberg, electricity purchased from waste-to-energy producers must be cheaper than Eskom’s tariff and generate lower emissions than the national grid.
Limberg noted that bulk electricity purchases from Eskom currently consume about 70 percent of the city’s tariff income, making energy procurement its single largest expense.
City officials said diversifying energy sources is crucial to limiting Eskom’s influence on local electricity pricing and easing the broader cost-of-living pressure on households and businesses. By buying power from independent waste-to-energy producers, Cape Town hopes to stabilise tariffs while also supporting cleaner energy alternatives.
