Cape Town opens electricity grid to private traders. Mayor Geordin Hill-Lewis explains…
“This is an exciting leap forward to diversify our electricity supplier base beyond Eskom to a future of decentralised electricity trading in South Africa,” says Hill-Lewis.
City centre of Cape Town, Table Mountain. Wikimedia Commons/Discott
CapeTalk's John Maytham is joined by Cape Town Mayor Geordin Hill-Lewis.
Listen below:
Following the successful completion of a year-long pilot project on electricity 'wheeling', the City of Cape Town is now opening its electricity grid to facilitate private electricity sales and trading.
Wheeling lets people buy electricity straight from independent power producers or licensed sellers using the local power lines.
ALSO READ: How South Africans are being helped and hindered when going off-grid
"The practice of wheeling is when an energy producer, typically a large roofed company like a shopping mall, sells to an energy customer across the grid, without the municipality getting involved."
- Geordin Hill-Lewis, Mayor - Cape Town
A small fee is paid to the municipality for the use of its infrastructure, explains Hill-Lewis, but that's where the City's involvement ends.
More than half a million kilowatt hours have already been wheeled across Cape Town’s grid during the pilot phase between three energy companies generating power from several sources.
"In future, it will become more and more complex as you have thousands of producers and thousands of buyers, and then you'll have trading companies that agglomerate all of that power together and sell it to everyone who wants it."
- Geordin Hill-Lewis, Mayor - Cape Town
So, with the return of loadshedding recently, does this mean Cape Town residents can sign up with traders to go 'off the grid'?
Hill-Lewis says it's possible in theory, but likely not just yet.
"... but I think you would struggle to find a supplier for such a tiny amount. Those people who are looking to find a buyer are looking to find significant customers, a business."
- Geordin Hill-Lewis, Mayor - Cape Town
"In future, there's no reason... you could go to one of many companies. You could buy from them and buy energy for your house. I have no doubt; that future is coming."
- Geordin Hill-Lewis, Mayor - Cape Town
ALSO READ: Eskom wants 36% increase: 'Its power becoming unaffordable' – Geordin Hill-Lewis (Mayor, Cape Town)
Scroll up to the audio player to listen to the interview.