Cape Town to spend $4 B on projects
City to invest in power plant upgrades, solar PV expansion, and LED streetlighting as part of its strategy for a resilient, future-ready energy network.
Image for illustrative purposes
South Africa, Cape Town: The City of Cape Town has announced a major $4 B (R71.2 B) investment plan for its energy sector over the next three years, focusing on strengthening power infrastructure, curbing load-shedding, and expanding clean energy.
Xanthea Limberg, the city’s mayoral committee member for energy, said the funds will be directed toward refurbishing the Steenbras power plant, expanding solar PV capacity, and improving energy efficiency, especially through upgraded streetlighting and battery storage initiatives.
“Over $67.7 M (R1.2 B) will go into the Steenbras plant’s multi-year upgrade, with an additional $73.3 M (R1.3 B) earmarked this year for broader energy initiatives,” Limberg said. This includes $4.3 M (R75.5 M) for street and public lighting and a further $9 M (R160 M) over three years to expand the LED replacement programme.
Cape Town is also investing in decentralised energy solutions, including $10.3 M (R183 M) for its small-scale embedded generation programme and $3.2 M (R57 M) to boost the output of the Atlantis Solar Plant, which will soon feature the city’s first battery energy storage system.
Infrastructure upgrades across various metro areas, including Bellville, Gugulethu, Woodstock and others, are also planned. Additionally, Hout Bay and Noordhoek will see improvements in their low-voltage depots.
A total of $18 M (R320 M) is being allocated to new metering systems over three years, with $5.6 M (R100 M) set aside for 2025/26 alone.
The city is also aligning with the National Treasury’s tariff reform to ensure fair, cost-reflective pricing and give consumers more control over their electricity use.
Source: ZAWYA
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