Talks are underway between the City of Johannesburg’s power utility, City Power, and private power station in Kempton Park, Kelvin Power Station, to extend their agreement to supply electricity to residents in Johannesburg. Isaac Mangena, the Spokesperson for City Power, says it announced in March 2023 plans to amend the existing contract, which is due to expire on or before the 31 October 2023 depending on the depletion of the 15% of the extended contract value or expiry of the contract period. The intended extension is up to 31 October 2026.
In October 2021, City Power signed a new power purchase agreement with Kelvin Power Station.
The new agreement included an additional power supply of 100 megawatts (MW) from 80MW to Johannesburg households and businesses, bringing the total to 180MW.
Mangena says City Power is currently purchasing 87% of its power from Eskom and Kelvin supports with the balance of 13%.
The power utility is exploring sources of alternative energy mix strategy (AEM) to catapult the entity into a new era of inventiveness and sustainability, and this paves the way for the City of Johannesburg to be a world-class African city.
“The AEM will enable City Power as a company to meet our own ambitions. The intension is to increase profitability, reduce dependence on Eskom, retain customers, and realise sustainability for us over a 15-year period,” says Mangena.
“These include the onboarding of Independent Power Producers – both short and long term – the Installation of Rooftop Solar Systems, Ripple Relay and Load Limiting Systems, Investment in Energy Efficiency and the Energy Management Systems, Solar High Mast and geysers, and the recommissioning of Open Cycle Gas Turbines,” he adds.
City Power CEO Tshifularo Mashava recently announced that it finished its plans to address loadshedding and is now on the implementation path. This will include City Power rolling out rooftop solar systems in City of Joburg buildings, and coordinating the implementation of energy solutions for our sister companies such as the Joburg Market, Joburg City Parks and Zoo.
The Member of Mayoral Committee for Finance in the City of Johannesburg, Cllr Dada Morero, in his 2023/24 budget speech, said City Power is allocated a three-year capital budget of R4.3 billion, which is aimed at various infrastructure projects.
These include, energy efficiency, public lighting, rooftop PV, security and protective measures to protest substations from vandalism and theft, IT network upgrades, revenue protecting investments through upgrade of prepaid and smart meters and emergency upgrade work for various facilities citywide.
“The City will explore and adopt an energy mix that is not dependent on coal, such as mine gas from landfills, extract energy from waste, and use energy from renewable sources such as solar energy,” Morero said.
There is also an expected R1.1 billion revenue from sales to Eskom through the extended back-to-back agreement with Kelvin Power station and Eskom.
SOURCED FROM JOBURG WEBSITE AND Written by Brümilda Swartbooi
14/06/2022
