City of Cape Town seeks finance partners to boost its renewable energy plans

In a step towards the City of Cape Town’s plans to diversify its energy mix, the municipality is calling on private and public sector financiers with proven experience in providing renewable energy finance, to submit proposals for low-cost finance of renewable energy projects that will be owned and operated by the City.

Over time, the City’s renewable energy programme could reduce Cape Town’s greenhouse gas emissions significantly. The City hopes to have a ground-mounted solar PV plant built and self-operated by 2022 / 2023 if all goes according to plan. This is in addition to its intent to procure some of its energy from independent power producers in future.

The programme will be made up of a number of projects ranging in size from less than 1MW to 100MW per project and all projects will be located on City-owned land and buildings, typically within the City distribution grid” comments the City’s Mayoral Committee Member for Finance and Executive Deputy Mayor, Alderman Ian Neilson.

It will comprise a range of technologies and sizes, including both rooftop and ground-mounted solar PV systems, developed and implemented over a period of 20 years, until 2040. The City is already a leader in its climate actions, in efforts to diversify its energy supply, in energy efficiency and in sound governance and prudent financial management. We look forward to entering partnerships as we all join the movement for a more sustainable, climate-friendly city”.

  • The renewable energy provided is expected to be derived predominantly from solar PV and wind generation systems accompanied by utility scale energy storage with the opportunity for other renewable or lower carbon energy sources to be included.
  • The finance provided must cover all costs required to connect the projects to the distribution grid.
  • The minimum operational life of each project is expected to be 20 years and accordingly the tenure of the funding instrument should be in the region of 15 to 20 years.
  • The finance provided should cover all costs of development and construction of each power plant and can be in the form of loans or debt, grants, equity, credit guarantees, or a blend thereof.
  • This renewable energy programme has the potential to reduce the City’s greenhouse gas emissions significantly over time. Consideration should therefore be given to accessing concessional climate finance due to the beneficial climate mitigation impacts of the renewable energy programme.
  • For larger scale projects, there is the potential to explore projects located within, or near, the City’s boundaries, but connected to the Eskom grid.

The City has always believed that local governments have the constitutional power and obligation to procure renewable energy, and this is necessary to move away from the sole reliance on Eskom for energy supply. A stable and cleaner energy supply will also give the economies of Cape Town and other municipalities in the country a boost towards sustained recovery following the impact of the Covid-19 pandemic on the economy,” said the City’s Mayoral Committee Member for Energy and Climate Change, Councillor Phindile Maxiti.

About the request for information (RFI)

Proposals may be submitted between the 14th of July and the 27th of August 2021:

To have a submission considered, a proposal detailing the solution that is recommended must be submitted along with supporting documentation. This includes a report with the following information:

  • Sufficient detail of the types of finance available for each mechanism or instrument offered.
  • Details of how these types of finance will be appropriate for meeting the City’s needs.
  • The timeline, process, and requirements for engaging further on and accessing these finance options.
  • A list of the additional value-added services, including but not limited to: opportunities for direct community benefits and/or participation; or available support for the City if one or more of your finance solutions is selected, especially if support is provided for project preparation.
  • A company profile, track record of providing similar financial mechanisms, and expertise available.

How to submit proposals

Submissions should not exceed 20 pages (including supporting documentation). The maximum size for submissions is 10MB.

Online

Complete the RFI response form and attach an electronic copy of the proposal.

​​​Email

Download and complete the Response Template (Annexure A)

Email the completed response template and all supporting documents (MS Word or PDF) to Hilton.Robbins@capetown.gov.za.

Please visit https://bit.ly/CCT-RFI for more information.

Source: Propertywheel.co.za | https://propertywheel.co.za/2021/07/city-of-cape-town-seeks-finance-partners-to-boost-its-renewable-energy-plans/

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