Amazon and 14 other private companies will trade electricity on Cape Town’s grid

POWERX Proprietary LimitedAmazon has a big office and edge data centre in Cape Town. It is alsoTo supplement its energy needs, Amazon has a 10MW solar power plant in the Northern Cape that first entered commercial operation inThis facility generates electricity that is wheeled over Eskom’s grid to Amazon Web Services data centres.The latest development is one of several initiatives undertaken by Cape Town to liberalize its electricity landscape and fight load-shedding.

Cape Town mayoral committee member for energy, Beverley van Reenen, explained that wheeling sales will be governed by bilateral power purchase agreements influenced by market dynamics instead of regulation. “The price of the energy is set between the parties and not by the city, Eskom, or the National Energy Regulator of South Africa ,” said Van Reenen.

The city said it already had the enabling legislative framework in place for wheeling, with the City’s Electricity Supply By-Law allowing for the retail wheeling of electricity through the network.

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