I’m honoured to have the opportunity to welcome you all to Cape Town for the Solar Power Africa conference 2022.
This is the first-ever trade show dedicated to solar power and energy storage in Africa, and this sends a number of important signals to the continent and to the world.
First, the fact that we have all gathered to talk specifically about the role of solar as a source of energy for Africa signals the incredible and rapid mainstreaming of this industry worldwide.
The facts are clear. Solar photovoltaic power is a clean and affordable source of electricity that can be used to generate at the scale required by large economies, while emitting negligible amounts of carbon.
This is as true for Africa as it is for anywhere else.
The second important signal sent by our presence here today — in the CTICC and not in Johannesburg or Lagos — is that Cape Town will be leading the way in harnessing solar power to achieve an energy-secure future for South Africa and the continent.
Ladies and gentlemen, to start off this conference with the right energy, I want to make an announcement. It’s an announcement that I hope will energise many of you in the room.
In Cape Town, we’ve been speaking for a while about our plans to diversify our electricity supply and procure power from IPPs. Today, those plans become action. Why?
South Africa’s energy crisis is an economic emergency. We cannot keep on just paying lip service to the need for energy security in SA. There is only one topic in the energy debate: how to end this crisis as soon as possible.
We have come to accept load-shedding as a fact of life in South Africa. But in Cape Town, we say, no longer!
Today, we take the first important step on a journey to making Cape Town the first load-shedding-free city in South Africa.
I am proud to announce that the City of Cape Town is opening its first round of procurement of power from independent power producers. The tender documents will be made available on the city’s website today.
I’d like to take this opportunity to thank Kadri Nassiep, the City’s Executive Director of Energy, and Cllr Bev van Reenen, the Mayoral Committee Member for Energy — who are sitting here today — for all their hard work in getting this tender together in record time. Kadri and Bev will be on-hand for the duration of the conference to answer any questions you may have about the tender process.
We will be procuring up to 300MW of renewable energy, much of which will be generated by solar photovoltaic plants.
We will be considering proposals from IPPs for projects that will allow us to access an affordable and reliable electricity supply.
We are particularly eager for proposals from IPPs that are able to help us eliminate our reliance on Eskom during peak times of use.
We will consider proposals from a range of projects, including generation-only projects, generation plus storage, and storage only.
It is crucial to us that we are not only able to keep the lights on during off-peak times, but that we are able to supply households and businesses with electricity when they most need it. Reliable energy is critical for any thriving economy and that is what we will provide in Cape Town.
A second tender for dispatchable generation projects over 20MW, which can be brought online in a short space of time, will follow this initial tender. Over time, we will also procure much greater storage capacity to ensure the reliability of our supply and the integrity of our grid.
Links to the City’s website, where the tender documents are hosted will be posted on the City’s social media during the course of the day, as well as my own social media.
Through this IPP process, many of you sitting in this room will become the City of Cape Town’s partners. I think it’s important, therefore, that you are given some insight into how we envision the future of electricity generation, supply, and reticulation in South Africa.
Last week, I met with Eskom’s CEO Mr André de Ruyter for a refreshingly frank discussion on Eskom’s future, and Cape Town’s role in achieving energy security.
Unsurprisingly, we found ourselves in full agreement with each other on most of the issues. He is also happy for me to share this with the public.
Mr de Ruyter’s view is that the national government is committed to fully opening the way for municipalities’ procurement of power from the private sector. This is in line with President Ramaphosa’s very refreshing view that he expressed in the State of the Nation Address last week — that the role of the state is to enable economic growth and investment, rather than hindering these things through legislation and red tape.
This is an approach to the economy that I have been calling for, for over a decade.
At this point, I’d like to make a very direct appeal to the national government. If you want to prove your commitment to what the President said in SONA, this is the test: back Cape Town as we procure our own power.
Do not erect any new barriers on our journey towards energy security. Do not interpret unclear legislation to give your ministers veto powers over our procurement contracts. Instead, partner with us by showing you are committed to solving South Africa’s energy crisis as quickly as possible.
We’re encouraged to see a sensible approach to the market in general — and the energy market specifically with amendments to the ERA — finally coming to fruition in national government and Eskom policy.
With a diversified energy generation mix with an increasing role for renewables over time, we will be able to supply our customers with more affordable and more reliable electricity.
In the spirit of trust, I also want to make a commitment to you as potential future partners.
I am aware that some potential projects are facing challenges in respect of their financing partners, who believe doing business with municipalities is a risk.
Ladies and gentlemen, if they’re talking about Cape Town, these financial institutions are wrong. The City has a strong record of paying its vendors exactly what we owe, on time. We are in a strong financial position with very little debt. In many ways, we are a more reliable business partner than some major private companies and even the National government with its Treasury backing.
Business is, by nature, a risky thing. But doing business with the City of Cape Town is about as low-risk as you’re going to find in South Africa.
With full knowledge that I’ve now hijacked this platform for long enough, I want to wish you all the best for your conference. I hope your discussions are fruitful, and that this will be a pivotal moment for your industry.
Finally, I want to thank you for being here, and thank you to the event organisers for choosing Cape Town! Each of you is playing a part in ensuring that we can have sustainable energy security in Africa.
Energy security is one of the great social justice issues of our time. Energy security means businesses succeeding. Energy security means more jobs. Energy security means meaningful economic recovery and growth.
Whatever role you have to play — small or large — thank you for your commitment to the progressive, poverty-ending goal of sustainable energy security in Cape Town and the whole of the mighty African continent.
Source: City Of Cape Town
