- Cape Town is set to begin construction on its first city-run solar PV plant in Atlantis, with a budget of R200 million and an expected capacity of 7-10 MW by late 2025.
- The city has also issued a tender for a 5 MW battery storage facility at the same site to enhance energy efficiency and support its 2050 Energy Strategy.
Construction is set to begin on Cape Town’s first city-run solar photovoltaic (PV) plant in Atlantis, located 40 kilometres north of the city centre. The R200 million project, expected to be completed within a year, aims to contribute between 7 MW and 10 MW of renewable energy to the city’s electricity grid, as Cape Town Mayor Geordin Hill-Lewis stated.
Once operational, the solar plant will connect to a nearby main substation, directly feeding power into the grid. Mayor Hill-Lewis anticipates that the first electricity from the facility will be delivered by late 2025. He emphasised the potential for future expansion, stating that the city plans to roll out similar solar plants across the metro in the coming years.
Currently, Cape Town relies heavily on Eskom for its electricity supply, with 75% of the tariff income from electricity sales directed toward purchasing power from the utility. With Eskom’s ongoing price increases, Mayor Hill-Lewis noted the necessity of diversifying energy sources to ensure a more sustainable and stable energy supply for the city.
Eskom has recently applied to the National Energy Regulator of South Africa (Nersa) for a substantial 36% tariff increase, citing rising costs associated with power provision. In addition to this request, the utility has proposed an 11.8% increase for the 2027 financial year and a 9.1% hike for the following year, further underscoring the urgency of exploring alternative energy options.
In tandem with the solar PV plant, the city has issued its first tender to construct a 5 MW battery storage facility at the same site in Atlantis. This pilot project aims to incorporate energy storage into the city’s network, enhancing the efficiency and reliability of renewable energy use. By co-locating the battery system with the solar PV plant, both technologies can operate synergistically as a hybrid energy solution.
The solar plant and battery storage initiative are critical components of Cape Town’s 2050 Energy Strategy, which focuses on diversifying energy sources and ensuring a secure energy future for the city. The city has awarded the tender for engineering, procurement, and construction to the Lesedi Technoserve Consortium.
This notable firm includes partners such as Group Five and J&J Group, along with French multinational Areva NP, known for its expertise in nuclear energy. This collaboration highlights Cape Town’s commitment to embracing innovative energy solutions while addressing the challenges posed by traditional power sources.