In a strategic move to secure its energy future, the City of Cape Town has officially issued a tender seeking proposals from private electricity traders. The initiative aims to establish a formal panel of suppliers to help power South Africa’s second-largest city, marking a significant departure from traditional procurement methods.
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Kadri Nassiep, the city’s executive director of energy, explained in a recent interview that the goal is to streamline the power acquisition process. By creating a consolidated panel, the city can bypass the complexities of negotiating with individual generators one by one, allowing for a more agile and efficient energy market. According to the tender documents, the city is looking to procure as much as 500 megawatts of power, with contracts expected to run for three years or longer.
This move positions Cape Town as the first major South African municipality to fully capitalize on the country’s evolving electricity regulations. By diversifying its source of supply, the city is actively chipping away at the long-standing monopoly held by state-owned utility Eskom. This shift toward a competitive market is intended to improve energy security and potentially stabilize costs for residents and businesses alike.
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The trader tender is part of a broader, multi-pronged energy strategy. Cape Town has already issued several calls for renewable energy projects and currently operates a program that buys back excess electricity from homes and businesses equipped with solar panels. By integrating independent traders into this ecosystem, the city is building a decentralized grid that prioritizes sustainability and local resilience.
Source: https://bandwidthblog.co.za/2026/02/14/cape-town-independent-electricity-tender/
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