Category Archives: Proptech

Electricity wheeling changes for South Africa

The updated Regulatory Rules on Network Charges for Third-Party Transportation of Energy have been released by the Department of Electricity and Energy.

The updated rules, also referred to as the electricity wheeling framework, were revealed by minister Kgosientsho Ramokgopa during a media briefing on Tuesday.

Wheeling refers to the transmission of electricity from a private generator to an end-user via existing transmission or distribution infrastructure. It enables businesses or municipalities to buy power directly from independent producers, using the national grid to deliver it—reducing reliance on Eskom and supporting energy diversification.

The minister touted the move as the “most consequential intervention” in South Africa’s electricity sector.

“It’s going to help us remake the energy and electricity landscape in the country and…bring into life what was envisaged in the Energy Action Plan that the President enacted in July 2022.

“It’s also consistent with our objective of ensuring that we are able to achieve energy security in the country. We are able to diversify generation sources and we don’t only rely on Eskom for electricity generation in the country,” he said. 

Conditions for third-party participation include:

  • Participants must be licensed and registered with the National Energy Regulator of South Africa (NERSA);
  • Power purchase agreements, connection and use-of-system agreements must be appropriately concluded;
  • Grid code compliance and auditable metering required.

Open access

The updated wheeling framework is aimed at supporting open access to the electricity network which will allow consumers to choose power sources – enabling competition and lowered electricity prices.

The rules are also aimed at: 

  • Non-discriminatory access: Ensuring equal access to the grid for all users.
  • Cost reflective tariffs: Charges to reflect the actual cost of network use.
  • Fairness and equity: Balance the interests of customers and licensees with non-biased tariffs.
  • Transparency: Promote unbundled tariffs that show true costs, subsidies and levies.
  • Network reliability: Maintain the integrity of the security of the grid during wheeling.
  • Standardisation: Create consistent processes across all network service providers.
  • Regulatory certainty: Reinforce NERSA’s role in governing fair and transparent access.
  • Just Energy Transition: Enable access to renewable energy through wheeling.

The minister said this brings the reforms announced by the president to life.

“…We are democratising this space. We are not just relying on Eskom as a sole generator of electricity, there will be multiple generators of electricity. And with competition comes efficiency, comes innovation, research and investment, and we are likely going to drive the prices down. 

“That’s why when we talk about affordable electricity, these are part of the elements [and] the components that are going to make it possible for us to make energy affordable for everyone, including the poor and downtrodden and those that are in villages, those are who are in peri-urban areas,” Ramokgopa said.

Energy Action Plan

The EAP was announced by President Cyril Ramaphosa in July 2022 and is coordinated by the National Energy Crisis Committee (NECOM) under the leadership of the Minister.

The plan aims to reduce the severity and frequency of load shedding in the short term and achieve energy security in the long term through five key interventions:

  1. Fix Eskom and improve the availability of existing supply
  2. Enable and accelerate private investment in generation capacity
  3. Fast-track the procurement of new generation capacity from renewables, gas and battery storage
  4. Unleash businesses and households to invest in rooftop solar
  5. Fundamentally transform the electricity sector to achieve long-term energy security

South Africa property developer scores R1 billion for smart city build

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a R1 billion (approximately $58 million) investment in listed apartment developer Balwin Properties.

The funding will support the construction of over 16,000 affordable homes for low- to middle-income buyers in the greater Johannesburg area, helping to expand access to affordable housing in South Africa.

IFC’s local currency R1 billion loan for Balwin Properties will facilitate the construction of Mooikloof City, a housing development to be located east of Pretoria and about 40km from Johannesburg consisting of 16,468 housing units.

The houses will be built to high environmental standards, and include energy-efficient appliances, water-saving equipment, and insulation to minimize temperature fluctuations, enhancing sustainability and supporting South African’s transition to a lower-carbon economy.

Each house will be certified by IFC’s Excellence in Design for Greater Efficiencies (EDGE) tool.

IFC’s investment is expected to promote job creation and economic growth through its impact on the local community and surrounding areas, deepening local supply chains, and improving business and residential infrastructure.

“Balwin is the world’s largest developer of EDGE Advanced certified apartments, enabling savings of more than 40% in energy and 20% in water and embodied energy in materials compared to conventional building methods. Homeowners save on monthly utility charges through lower consumption as well as through potential lower bond repayments thanks to our Green Bonds with most major banks,” said Steve Brookes, CEO of Balwin Properties.

“As urbanisation accelerates, we recognise the critical role the private sector must play in addressing the housing shortfall and we are proud to be part of the solution. Beyond housing, this investment will stimulate job creation, economic growth and local supply chains, strengthening the surrounding community and contributing to South Africa’s broader development goals.

An estimated 66% of South Africa’s population resides in urban areas, a figure projected to rise to 71% by 2030. To effectively address the country’s large housing shortfall, it is essential for the private sector to play a meaningful role in complementing the government’s construction efforts. the IFC said.

New report reveals promising investment opportunities in controversial industry in SA

South African green economy non-profit GreenCape has published its 2025 Market Intelligence Report (MIR), highlighting the most promising investment opportunities in key renewable energy sectors in South Africa.

South Africa has over 80 GW of renewable energy currently under development, with 32 GW expected to be grid-connected by 2030.

Private sector interest in large-scale renewable energy has surged, driven by regulatory reform and improved access to power purchase agreements (PPAs) and wheeling contracts.

By 2030, private solar PV is projected to grow by 6 GW and wind power by 3.5 GW, representing a combined investment potential of R132 billion (R26.4 billion annually).

However, key barriers remain: grid capacity constraints, uncertainty around Eskom’s restructuring, and regulatory risks for PPAs. Addressing these could unlock even more investment.

The South African Renewable Energy Masterplan and designated special economic zones are poised to boost local manufacturing of renewable energy components, aligning with the Just Energy Transition (JET) Implementation Plan.

The commercial, industrial, and agricultural (CI&A) sectors have installed 3.2 GW of behind-the-meter (BTM) battery storage, with an additional 2 GW forecasted by 2030.

BTM energy storage is becoming increasingly valuable beyond backup power, enabling functions like demand response, tariff arbitrage, and peak shaving. The MIR estimates this market will grow to 2 GWh by 2030—an investment value of R10 billion.

Embedded solar PV systems are also growing rapidly. Between 2023 and 2024, the sector recorded a 25% compound growth, adding over 2 GW of new capacity—the highest annual increase to date. By 2030, embedded solar in CI&A sectors is expected to grow by 3.8 GW, translating to R53.2 billion in investment.

As this trend continues, utilities and distribution operators will need to adapt to manage increased complexity from decentralised energy generation.

Electrification of last-mile delivery, public transport, and mid-range freight vehicles represents the biggest near-term growth opportunity in South Africa’s EV sector.

Though currently concentrated in the luxury segment, passenger EVs are projected to grow to 21,100 units by 2030, representing R13.9 billion in potential sales.

Mid-range EV models and innovative financing—such as Electric Vehicles as a Service (EVaaS)—are expected to boost adoption.

Mid-mile logistics are expected to drive adoption of more affordable electric freight vehicles, with the market expected to grow to 1,000 vehicles, valued at R1.43 billion by 2030.

The growth of e-commerce and urban deliveries is fueling demand for electric two- and three-wheelers. From a base of 3,800 vehicles in 2024, this sector is forecast to grow by 17,900 vehicles by 2030—a R1.2 billion market.

Driven by fleet operators’ commitments and long-term procurement plans, electric bus sales are expected to grow by 420 buses by 2030, unlocking R2.9 billion in investment.

GreenCape’s reports reinforce the pivotal role that clean energy, green transport, and smart storage technologies will play in South Africa’s energy future.

With billions of rands in investment opportunities on the table, the country is positioning itself as a key player in the global green economy transition.

Cape Town moves towards ‘car free’ inner city

The City of Cape Town invites residents, the business community and all stakeholders to comment on the proposed Mobility and Access Plan for the Cape Town CBD.

This plan is included as part of the draft local spatial development framework (LSDF) for the Cape Town CBD that is available for public comment until 11 May 2025.

The first draft LSDF and proposed Implementation Plan was made available for public comment in September and October 2024. The city said it refined these draft documents, taking into account the comments received during the first round of public participation.

The proposed Implementation Plan consists of programmes, projects and actions to be implemented by various city departments with support from the private sector and other inter-governmental stakeholders in various priority precincts within the CBD.

“Drawing on the growth projections of the draft LSDF, the Mobility and Access Plan seeks to optimise the use of existing transport infrastructure to enable many more people to move around the CBD. It proposes some bold interventions to make the CBD more pedestrian friendly and to improve access to and within the area,” said the city’s Mayoral Committee Member for Urban Mobility, councillor Rob Quintas.

“The intention is to create a walking and cycling network that is efficient and well-connected; one that users find safe and convenient and will improve access. Ultimately, those who work and live in the CBD, and visitors, must find it easy to get to their destinations and a pleasure to move through the area.”

CBD Mobility and Access Plan (CBDMAP)

The main ideas are to improve walkability in the heart of the CBD, around the public transport stations and terminus; to promote walking and cycling within the CBD by creating a decongestion zone; and to divert through-traffic onto bypass roads, with targeted safe crossings for pedestrians and cyclists.

The decongestion zone would include superblocks, similar to those in Barcelona, but relevant to the local context.

The strategic objectives are as follows:

  • Prioritise public transport along transit streets, amongst which Darling and Adderley Streets, and related street sections
  • Re-prioritise lower order streets from vehicular traffic to pedestrian-friendly spaces to encourage walking and dwelling
  • To support internal economic growth and social activity along activity streets, such as Bree, Long and Loop Streets
  • Retain the majority of vehicular movement on high order bypass routes, such as Buitengracht, Buitensingel, Mill, Tenant and Christiaan Barnard Streets, and the foreshore freeway precinct
  • Develop a seamless network that will make walking and cycling easy, safe and attractive

The plan proposes a road network plan that identifies the role, function, and typical characteristics of the roads within the CBD study area; and a schedule of routes to be partially pedestrianised. The intention is for the majority of vehicular traffic to travel around the CBD with no parking or cycling along these bypass routes.

The plan also identifies routes where public transport will be given priority. It proposes reallocating the street space to reflect the priorities of pedestrians, in particular for commuters using public transport, public transport vehicles, cyclists, and activities supporting economic activity.

Conflict between vehicular movement and pedestrians is addressed through superblocks in the historic core, and through traffic calming and control measures at major pedestrian crossings, such as those found along Strand Street.

The city said it also intends to develop a parking plan for the CBD to facilitate a gradual transition from private vehicle dominance towards a more people-centred environment that encourages walking and cycling and the use of public transport services.

The parking plan will elaborate on the provision of park-and-ride facilities on the periphery of the CBD to ensure the area becomes as car-free as possible.

A key priority is to develop an integrated transport and land use solution for the Foreshore Precinct. A feasibility study is under way and has not been concluded as yet.

The current freeway viaducts carry significant traffic during the morning and afternoon peak periods. The scoping study is aimed at developing the optimum transport and land use solution to ensure long-term investment and economic growth of the Central City and Atlantic Seaboard, while maximising the precinct’s public amenity value and development potential.

“The primary objective as it relates to pedestrians and cyclists is to, ideally, arrive at a ‘car free’ CBD in future where the freeways, major mobility routes, and minor mobility routes facilitate vehicular access to and from the area, and where the inner-grid of lower order streets gives priority to pedestrians and cyclists,” said Quintas.

“This plan must be supported by a parking plan. I want to reiterate that the transition to this vision will not happen overnight and will have to be sequenced with the improvement of public transport services, in particular the restoration of the passenger rail service in coming years.”

Cape Town opens electricity grid to energy traders after successful pilot

The City of Cape Town is opening its electricity grid to private electricity sales and trading following the conclusion of a successful year-long electricity ‘wheeling’ pilot project.

Wheeling allows participants to buy electricity directly from Independent Power Producers or licenced energy traders using existing municipal grid infrastructure.

Over 562 800 kWhs of power has already been generated and wheeled across the City’s grid between private sector energy traders during the pilot phase.

On average, a home in South Africa uses around 4,500 kWh per year so 562,800 kWh would be enough to power approximately 125 homes for a year.

“In this next phase, the City will promote the scaling up of power trading across our electricity grid between qualifying private sellers, based on bilateral and multi-lateral trading agreements,” said mayor Geordin Hill-Lewis.

“This is the start of a changing role for municipalities in the energy space. If we consider what has been generated just in the pilot, when we scale it up, the numbers get absolutely huge so it is important that we get it right. Thank you to our City teams and private partners who have shown again that Cape Town is leading the efforts to change the energy regime,” the mayor said.

Cape Town’s wheeling pilot phase included three wheeling participants (traders), three generators and three off-takers:

  • Trader (trades the generated energy over the City’s grid)
  • Generator (generator of the wheeled energy)
  • Off-taker (receiver of the wheeled energy)

Trader: Enpower Trading
Generator: FairBridge Mall, Brackenfell
Off-taker: Shoprite Head Office, Brackenfell

Trader: Etana Energy
Generator: Constantia Shopping Mall
Off-taker: Growthpoint Properties, City Centre

Trader: Equites Property Fund
Generator: Equites Property Fund Limited, Parow Industria
Off-taker: APF Portside, City Centre

Equites Property Fund said that the transfer of electrons from its generation site in Parow Industria to the off-taker on the Foreshore enabled the company to advance its sustainability objectives.

“We are excited about the prospect of expanding our wheeling capacity beyond the pilot to serve multiple off-takers and look forward to the moderation of wheeling tariffs to encourage greater participation in this transformative initiative,” said Equites Property Fund head of Sustainability, Irshaad Wadvalla.

“By successfully delivering renewable power to Shoprite Checkers over the past year, we have shown that energy wheeling and trading is not just viable but essential to diversifying South Africa’s power supply. We commend the City of Cape Town in paving the way for energy security and economic growth and look forward to continued collaboration in expanding renewable energy access,” said Enpower Trading CEO, James Beatty.

Nearly 2 000 Cape Town residents cash in on selling excess solar power

Cape Town businesses and households have surpassed the R50 million earnings mark since the launch of the City’s Cash for Power programme in 2022/23.

Cape Town is the first metro to buy excess solar PV power from small-scale generators, with over 1 800 small scale power sellers now participating.

Under the Cash for Power programme, the City first credits a power seller’s total municipal bill automatically down to zero, generating a cash saving. Since 23/24, both businesses and households also now have the option to apply to earn cash once their municipal bill reaches a zero balance.

Investment in small-scale generation has boomed in Cape Town as residents moved to mitigate load-shedding and take advantage of City incentives, including reduced red tape and costs to install solar. As it stands, the City can purchase power in exchange for cash from a total of 176MVA of cumulative installed SSEG capacity in Cape Town.

Alan Winde, premier of the Western Cape said this week that the province’s electricity demand is growing fast—from 4,000MW to 4,479MW this year alone.

“Our Energy Resilience Programme launched just two years ago, has already unlocked 2,000MW of new energy development and shown what can be achieved when you collaborate and focus on a critical foundation of the economy.”

He noted the following: Over 1 000 MW has been added to the provincial grid (non-Eskom & non-REIPPPP). “At this pace, we may even beat our target before 2035 and become a net exporter of energy. This is expected to attract between R21.6 billion and R68.4 billion in investment.”

In South Africa, solar capacity has jumped from 2.8GW to 7.8GW in just two years. By late 2024, 710MW of rooftop solar PV was installed in the Western Cape alone. The premier said that combined, solar could soon generate nearly a fifth of Eskom’s coal power capacity.

“We are delighted to reach the R50 million mark in Cash for Power earnings for Capetonians. In fact we are on track to double earnings in 24/25 compared to the first year of our programme,” said Cape Town mayor Geordin Hill-Lewis.

“This shows the extent to which households and businesses have invested in solar, and we are glad to see so many people selling back to the City in exchange for cash savings on their municipal bills and actual cash payouts. We will buy as much excess power from Capetonians as they are able to sell us. The return of Eskom’s load-shedding shows that we must keep moving at pace towards a more energy secure Cape Town that is less reliant on Eskom,” he said.

The mayor said that over three years the city is further investing over R4 billion in electricity grid upgrades to enable a decentralised energy future.

Cape Town businesses and households have already earned over R55 million, largely in municipal bill credits, since the start of the 2022/23 financial year, ending 31 January 2025.

This figure includes R43.1 million on the feed-in tariff, plus an additional R12.9 million when including the 25 cents per kWh incentive the City has added to encourage participation.

As of 1 February 2025, there are currently 1 842 sellers benefitting from Cape Town’s Cash for Power scheme as part of the City’s broader plans to end load-shedding over time. Of these sellers, 1 090 are residential and 752 are commercial/industrial.

For 24/25, the residential feed-in tariff is 92.13 cents and 82.06 cents for non-residential, with both categories benefitting from the 25 cents per unit incentive (all figures excl VAT).

Cash for Power earnings summary:

-22/23 (R10.6m sales + R3.6m incentive
-23/24 (R16.5m sales + R4.9m incentive
-24/25 until 31 Jan (R16m sales + R4.4m incentive)

Cape Town is set to accelerate its switch to green energy and limit reliance on erratic supply from Eskom after obtaining a €150 million (R2.9 billion) loan from KFW Development Bank in Germany.

“Through key policy changes, the City has been able to drive power sales by small-scale generators and make it simpler for people to invest in generation capacity. We have also launched a new online portal to make registering your solar PV system easier than ever, as well as a cheaper bi-directional meter to feed power back into the grid.

“It is important to note that customers do not need to apply for the cash for power programme if they only wish to offset their electricity and rates accounts against their total cumulated energy fed back into the City grid. They will automatically be credited on authorisation of their grid-tied SSEG system,” said the City’s Mayoral Committee member for energy, Alderman Xanthea Limberg.

Winds of change: Standard Bank points to big shift in renewables market

Standard Bank has closed a R4.9 billion deal for the 140MW Ishwati Emoyeni Wind Farm project, located near Murraysburg in the Western Cape.

A first of a kind project has reached financial close and entered construction with Standard Bank as sole mandated lead arranger.

The 140MW Ishwati Wind Farm was led, co-sponsored and developed by Africa Clean Energy Developments (ACED), with the African Infrastructure Investment Managers (AIIM) managed IDEAS Fund and Reatile as shareholders.

The R4.9 billion wind project, was the first sizeable renewable energy project to sign a GPPA (Generator Power Purchase Agreement) with renewable energy aggregator, NOA.

The wind farm will comprise 32 Vestas 4.5MW wind turbines, each standing 120m high, and started construction in September 2024 and will start generating electricity in 2026.

The power generated by the ACED-EIMS-IDEAS-Reatile generation consortium will be sold to NOA under a long-term power purchase agreement, enabling NOA to supply multiple business customers through shorter, more flexible arrangements.

“In the case of Ishwati, wind power generated in the Western Cape, will be wheeled through the Eskom transmission network and then transmitted to end users such as Tronox, MMC, Old Mutual Properties, Netcare and others,” said Karel Cornelissen, CEO of NOA Group.

“NOA is facilitating not wind or solar energy to end users but rather a profile of green electrons achieved by aggregating multiple generators (wind, solar and battery projects) and providing this to multiple end users under more flexible arrangements” said Standard Bank Executive: Project Finance, Energy and Infrastructure Finance Sherrill Byrne.

Standard Bank pointed to a big shift in the market, most notably the change in reform in line with the amendments of the Electricity Regulatory Act. This has provided room for more flexible power generation options through aggregators.

The lender has been mandated for four renewable power aggregators in South Africa. These aggregators source renewable energy from various generation assets, such as wind and solar, and sell it to multiple off-takers.

Additionally, Standard Bank said it aims to achieve net zero carbon emissions from its own operations by 2040 and from its portfolio of financed emissions by 2050, aligned with the Paris Agreement.

Cape Town to get a fleet of electric buses

Golden Arrow Bus Services (GABS) has taken a significant step toward transforming public transportation in Cape Town with the introduction of electric vehicles (EVs) into its fleet.

The company has signed a Memorandum of Co-operation (MOC) with Eskom, outlining the terms for ongoing collaboration related to the integration of electric buses into the South African public transport sector.

This partnership marks a major milestone in the country’s shift towards more sustainable transportation solutions.

Francois Meyer, CEO of Golden Arrow Bus Services, said the successful introduction of electric buses will require a number of partnerships across the value chain.

“Introducing electric buses at scale requires partnerships between large electricity generators, distributors and users – this MOC will enable us to work together to provide a public bus service which is safe, reliable and cost effective,” he said.

As part of the agreement, Golden Arrow plans to procure renewable energy from independent power producers (IPPs) in addition to Eskom’s supply.

Eskom’s role will extend to providing power distribution for potential future wheeling agreements, facilitating the growth of the electric vehicle infrastructure necessary for the project.

Golden Arrow aims to replace 10% of its fleet with electric buses by the end of 2025, a bold move that will generate valuable data for the South African public transport industry. Meyer noted that the data collected will allow others to make informed decisions about electric mobility in South Africa.

The rollout of electric buses is already underway, with Golden Arrow adding its first 20 electric vehicles (EVs) to its fleet. By the end of 2025, an additional 120 EVs are expected to join the service.

Golden Arrow has already installed 30 charging stations with 60 dispensers in Cape Town. The company plans to double this number by the end of the year to support the growing fleet of electric buses.

To ensure a reliable power supply for the vehicles, Golden Arrow will draw on both solar energy and off-peak electricity from Eskom.

The electric buses, which are manufactured by Chinese company BYD, have been in testing since 2020, with two buses introduced to the commuter service in 2021. Subsequent buses were introduced in 2022 and 2023 for further testing.

The city will also introduce 77 electric buses to its MyCiti fleet by 2027.

Discovery Green to supply renewable energy to leading property groups

Discovery Green has signed five new clients in the mining, property and hospitality sectors, securing long-term partnerships with Impala Platinum Holdings, KP Lime, The Capital Hotels and Apartments, Balwin Properties, and Fortress REIT Limited.

Wheeling is the delivery of energy from a generator to an end-user located in another area through the use of an existing distribution or transmission networks.

Discovery Green, part of the Discovery Group, provides affordable and price-certain renewable energy to businesses in South Africa, advancing the country’s transition to cleaner, more sustainable energy solutions.

The agreement with Implats represents a key achievement for Discovery Green’s portfolio. Beginning in 2026, a five-year Power Purchase Agreement (PPA) will provide 90% of the electricity required for Impala Refineries in Springs, Gauteng.

This agreement is expected to reduce Impala Refineries’ Scope 2 greenhouse gas emissions by more than 852,000 tonnes of CO2e over the next five years, while delivering substantial cost savings on over 130,000 MWh of electricity annually.

Patrick Morutlwa, Group COO at Implats, said: “From 2026, the PPA will reduce our Scope 2 GHG emissions by 170,484 tonnes CO2e per year and advance our goal of achieving a 30% reduction in carbon emissions by 2030, off 2019 as our baseline year.”

Discovery Green also signed a deal with KP Lime, a producer and distributor of burnt lime and dolomite. The 10-year power purchase agreement (PPA) will supply 54,000 MWh of renewable energy annually to the Bowden mine in the Northern Cape.

This agreement will replace over 90% of the mine’s energy needs with renewable energy, delivering significant cost savings and contributing to the mine’s sustainability goals.

The group said it is also finalised long-term agreements with The Capital Hotels and Apartments, Balwin Properties, and Fortress REIT Limited last quarter.

A 15-year agreement with The Capital Hotels and Apartments will supply 5,000 MWh of renewable energy annually to three of The Capital’s properties in Gauteng.

In a 20-year contract signed with Balwin Properties, Discovery Green will supply renewable energy to four Balwin sites, totalling 13,600 MWh annually.

The agreements follow a 10-year wheeling arrangement with Fortress REIT Limited, a leading property group. Discovery Green will wheel renewable energy to 14 Fortress properties, increasing Fortress’s renewable energy penetration up to 100% in these buildings.

By partnering with Discovery Green, the companies are positioned to replace more than 90% of their electricity demand with renewable energy wheeled from the largest wind and solar plants in South Africa, saving a total of 39,000 tonnes of CO2e emissions annually. The transition to renewable energy allows the companies to avoid escalating electricity costs, which are rising faster than inflation, and mitigate the impending impact of carbon taxes.

“These partnerships highlight our commitment to supporting sustainable business growth and resilience, helping companies remain competitive in an increasingly dynamic market,” said Andre Nepgen, head of Discovery Green.

Western Cape solar project to supply energy for entire region

The Riversdale solar energy project, which is set to bring reliable, affordable and renewable energy, is making satisfactory progress, says Western Cape Premier Alan Winde.

The multimillion-rand energy initiative is currently under construction in Riversdale, located in the Southern Cape, following a sod-turning ceremony in September 2024.

Riversdale, a growing hub of economic activity and job creation, is located along the N2 highway in the Hessequa region between Cape Town and George. The town is mainly agriculturally oriented, and is recognised as a hub for shopping and other services for surrounding farming communities, smaller towns and some coastal resorts.

Winde, who visted the project site on Friday, said the project is an important part of creating energy security, even though the country has had a reprieve from load shedding.

The first phase of the project is expected to provide power to local businesses by the beginning of next year. After three years, it should be extended to all residents of the Hessequa region.

Winde believes that municipalities in the Western Cape should continue to explore and invest in alternative energy solutions, with an added focus on making power more affordable and environmentally friendly.

He said the Riversdale project and others like it will help in the face of Eskom’s “staggering” 44% proposed increase for electricity sales to municipalities in the upcoming financial year. Through these projects, municipalities, the Premier said, would be able to absorb some of the worst of these price increases and pass on the benefits to their residents.

“This project is not just ensuring energy resilience, which is much needed after the disastrous spate of power cuts; we are also taking a more responsible approach to power generation through renewable and affordable energy provision.”

Eskom has applied to the National Energy Regulator of South Africa for a 44% increase in electricity prices for the 2024/2025 financial year.

The Western Cape Government (WCG) believes that the Riversdale energy initiative is essential for providing for the town’s residents, and that it will also play a vital role in securing economic growth and driving job creation in the region.

The solar project includes a 10 megawatt (MW)-hour solar photovoltaic (PV) system that can generate 15 million kilowatt-hours per year.

It features a battery energy storage system with a capacity of 10MW-hours, allowing for efficient energy storage and discharge.

It is also equipped with advanced monitoring and control systems, enabling real-time performance tracking and optimisation.

The project is being implemented in three phases. According to the WCG, It will provide energy to the whole of Riversdale, which currently has a population of around 22 000 people.

The WCG’s efforts to ensure affordable, reliable and renewable energy extend across the province, with projects such as solar PV installations, which are guided by the Energy Resilience Programme. The programme is aimed at generating 5 700MW by 2035.