Cape Town takes another step to dump Eskom

Cape Town has issued a tender seeking proposals from electricity traders as it moves to establish a panel of suppliers to help power South Africa’s second-largest city.

The tender, announced on Friday, is an attempt to streamline the process of procuring power rather than having the city buy it from individual generators, said Kadri Nassiep, executive director of energy for the city, in an interview.

Contracts for power provision sought through the panel will run for three years or longer, he said. The city may procure as much as 500 megawatts of power, according to the tender.

Cape Town is the first major South African city to capitalize on the country’s loosening electricity-market regulations, chipping away at state-owned Eskom’s long-standing monopoly.

The city has issued multiple tenders seeking mostly renewable power and also buys back excess electricity generated by solar panels installed on homes and businesses.