Cape Town Mayor Geordin Hill-Lewis has announced the City can now pay cash for power fed into the local electricity grid. Businesses, and in time residents, will receive cash for selling their excess power into Cape Town’s grid. This after National Treasury exempted the City from competitive bidding processes not designed for the coming energy revolution.
The sale of excess power by homes and businesses with Small Scale Embedded Generation (SSEGs), among other generation solutions, will contribute to Cape Town’s goal of 4-stages loadshedding protection within three years.
“The future is now, as we aim to immediately rollout the paying of cash for power. Payments to commercial customers will be possible before June, and within the year for any Capetonian with the necessary City-approved generation capacity. If you’re thinking of investing in a solar system, it just got more attractive,” said Hill-Lewis.
“We aim to buy electricity from as many City supplied customers as are willing to sell to us. These customers may now produce as much power as they can from their approved systems and feed it into Cape Town’s grid. Under this plan, we will also pay these customers an incentive over and above the NERSA-approved tariff as they help us turn the corner on loadshedding”.
“As our network of home power producers grows, so will our city’s energy security. This has the potential to be a powerful force to end load-shedding over time, together with our Independent Power Procurement programme, and Power Heroes incentives for voluntary energy savings,” said Mayor Hill-Lewis.
The National Energy Regulator of South Africa (NERSA) has approved a rate of 78,98c/kWh for this financial year for the City to pay power sellers. The City also adds a 25c/kWh incentive tariff on top of this.
“We are focused on ending loadshedding over time, and the City has steadily been laying the groundwork to enable payment for excess small scale power”.