Mayor agrees with Eskom CEO on city’s role in achieving energy security

14 February 2022

On Friday, 11 February, I met with Eskom’s CEO, Mr André de Ruyter, to discuss how Cape Town can help to achieve energy security in South Africa and assist Eskom in becoming a sustainable business.

Mr de Ruyter supported the view expressed by President Cyril Ramaphosa in his State of the Nation Address (SONA) that the national government is committed to opening the way for municipalities’ procurement of power from the private sector. Referring to municipalities’ procurement of power, the President said, “We opened the way for them [municipalities] to generate.”

The City’s plans to secure power produced in the private sector accords with the President’s stated position that the role of the state is to enable economic growth and investment, rather than hindering these things through legislation and red tape.

Eskom supports the opening up of the energy generation market over time to allow for competition. The City of Cape Town has been calling for such a plan for many years, and is encouraged to see it finally coming to fruition in national government and Eskom policy.

Market liberalisation will allow Eskom to build a commercially sustainable operation, centred on a strong transmission grid, while ensuring that South Africans have access to reliable and affordable electricity. A substantial portion of this electricity will be supplied by independent power producers (IPPs), which will help Eskom to power the country. Reliable, affordable electricity is critical for fighting poverty and unemployment.

This week, the City of Cape Town will publish tender documents for the first stage of its procurement of affordable, renewable energy from independent power producers. Given the President’s commitment to alleviating unnecessary constraints on the economy and given Eskom’s support, we are excited about the prospects ahead. We are happy to work in tandem with the national government and its entities where doing so will ensure a brighter future for all.

Energy security means businesses succeeding. Energy security means more jobs. Energy security means meaningful economic recovery and growth. Cape Town remains fundamentally committed to the progressive, poverty-ending goal of energy security in South Africa.

Issued by Media Office, City of Cape Town, 14 February 2022