The City of Cape Town is embarking on a bold programme to enhance its energy security while decarbonising its power network.
KEY INFORMATION
Location: Cape Town, South Africa
Date started: 2022
Completion date: ongoing
Client type: energy and natural resources
Main capabilities: procurement and supply chain, programme advisory
Tackling planned power outages across Cape Town
Faced with ongoing load-shedding and rolling blackouts that hinder growth for the city’s economy, and to begin the city’s clean energy transition, the City of Cape Town has committed to a more efficient and carbon-neutral future.
Determined to diversify its energy supply and reduce its dependence on the state power company, Eskom, for its energy supply, the city has launched a groundbreaking initiative to source electricity from independent power producers (IPPs).
Key to realising this ambition is the roll-out of the city’s Embedded and Dispatchable IPP Procurement Programme which uses a competitive tendering process to procure IPPs aligned to the city’s energy security and decarbonisation goals.
Achievement through collaboration
In February 2023 we were appointed by the City of Cape Town to provide multidisciplinary transaction advisory services, through a joint venture arrangement, to guide the design and development of the IPP procurement process. This covers lead transaction advisory, technical, legal and financial advice.
The joint venture agreement with iX engineers and Aevo Consulting Group, as well as a sub-consultant agreement with Caveat Legal, allows us to deliver the project on a framework basis.
The transactional advisory capabilities our team offers is the first of its kind in South Africa in the municipal space, enabling the city to expand on its vision for procurement of clean, reliable power to the municipal distribution grid, at scale.
Promoting our ‘one team’ culture and embedding the concept of continuous improvement as ‘business as usual’ are key themes of our approach, delivering industry best practice to the city. A digital platform comprising data management tools underpin our advisory capabilities, reporting and risk identification for this programme.
Delivering a consistent service approach
We are supporting the city to develop its procurement documentation including but not limited to, power purchase agreements, associated schedules and tender response assessment procedures.
These are all to ensure greater value in line with our sustainable procurement policies and to assist the city to deliver a formalised framework for transparent and efficient procurement processes.
With our input, an additional 500MW of independent power has been targeted by the city within five years, a crucial step towards the ultimate goal of avoiding the damaging and unsustainable effects of load shedding completely.
