Cape Town’s R8bn power deal sparks debate over affordability and jobs

By Oyisa George

Cape Town has signed an R8-billion electricity deal as the City moves to secure more of its power supply outside of Eskom.

The agreement forms part of efforts to diversify electricity sources and reduce reliance on the national power utility, amid rising costs and ongoing pressure on the country’s electricity system.

Speaking to VOC News, energy analyst Zakhele Madela questioned whether renewable energy projects would deliver meaningful economic benefits for local communities, particularly vulnerable households.

Madela says claims that renewable energy will provide cheaper and more predictable electricity need to be examined more closely.

“The problem with this statement, technically, scientifically, from an engineering and economic perspective, is that it is flawed.”

He argues that solar power is not available during peak evening demand, meaning other sources are still needed when the sun goes down.

“The so-called cheap [electricity] is only from nine o’clock to about four o’clock. But once the sun is gone in the afternoon, all the way up to nine o’clock the following day, renewable energy makes the whole power consumption very expensive because something else must pick it up.”

Madela also raised concerns about job creation and the involvement of local workers in the renewable energy sector.

He says residents should question who ultimately benefits from the City’s move away from Eskom.

“The people of Cape Town must ask themselves this: How much of Cape Town’s economy is driven by Eskom and the secondary industries that are created because of Eskom supplying the power?”

Madela says the country needs an evidence-based debate about its future energy mix, including the potential role of nuclear power.

Photo: Pixabay

Picture of Aneeqa Du Plessis
Aneeqa Du Plessis

VOC became the first Muslim radio station in South Africa when a special events license was granted to the station in Ramadan/January 1995. Subsequent temporary broadcast licenses were granted, permitting the station to broadcast for 24 hours.

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