---
title: "South Africa’s economic hub secures initial private power deals"
description: "Johannesburg, South Africa’s economic hub, has secured bids from private producers to provide 92 megawatts of electricity to help shield the city from nationwide electricity shortages."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "ENERGY CRISIS"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-08-25-south-africas-economic-hub-secures-initial-private-power-deals/"
published: "2023-08-25T05:00:14"
updated: "2023-08-25T02:16:05"
lang: "en-ZA"
word_count: 143
---

# South Africa’s economic hub secures initial private power deals

> Johannesburg, South Africa’s economic hub, has secured bids from private producers to provide 92 megawatts of electricity to help shield the city from nationwide electricity shortages.

By Bloomberg · Published 25 August 2023, 07:00 SAST · Updated 25 August 2023, 04:16 SAST

## Content

The local government and Johannesburg utility City Power last year [issued](https://www.bloomberg.com/news/articles/2022-11-16/richest-south-african-city-seeks-private-power-to-cut-blackouts) a request for short-term power purchase agreements. South Africa experiences electricity rationing on a regular basis as state-owned Eskom Holdings SOC struggles to meet demand.

The selected bids from companies using waste-to-energy, gas-to-power and solar generation technology provide cheaper electricity than using Eskom, City Power Chief Executive Officer Tshifularo Mashava said Thursday in a statement.

Johannesburg plans to add 500 megawatts of capacity by 2030. One megawatt is enough to supply about 650 households, [Eskom says](https://www.eskom.co.za/wp-content/uploads/2021/03/GI_0097WhatIsMegawatt.pdf) on its website.

Cape Town, the second-largest city in the country, also called for supply last year from independent power producers and has issued a tender to build its first grid-connected solar plant.

Johannesburg plans to install rooftop solar at over 700 sites and increase the number of solar water heating systems.

*(Reporting by Paul Burkhardt)*