Using Tenders to Finance 100% Renewable Electricity

In mid-2021, Durban (eThekwini) in South Africa passed its Transition Policy, building on the city's 2020 Climate Action plan, which targets 40% electricity from low-carbon technologies by 2030 and 100% by 2050. As part of this plan, the city launched a tender in 2021 to procure up to 400 MW of additional electric capacity from independent power producers in South Africa. This is the first tender of its kind for Durban, made possible by a landmark decision granted in late 2020 that enables South African municipalities to procure new power generation capacity outside of the state utility Eskom and to develop their own capacity.

These developments were driven by the need to establish an integrated municipal energy system with a diversified generation mix, in order to provide affordable and reliable energy for residents and businesses, improve energy security and create jobs along the energy supply chain. By procuring 400 MW from a diverse mix of sustainable, dispatchable and reliable generation technologies, the city hopes to enhance energy trade, stimulate competition and reduce the effects of load shedding on the local economy. The city called for all potential private developers, investors and experienced energy infrastructure organisations to submit proposals to support divestment from fossil fuels and investment in renewable sources.

Source: See endnote 71 in chapter 07.

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