The City of Cape Town has launched a tender to buy up to 500 megawatts of electricity from licensed energy traders and aggregators. The City says the move will make it the first municipality in South Africa to procure electricity at scale from this part of the market. The tender covers power purchase agreements ranging from one to 10 years.

Why the City is Moving Away from Eskom

According to the City, the plan is aimed at cutting reliance on Eskom and easing pressure from rising electricity costs. According to Cape Town Etc., Eskom purchases account for about 70% of the City’s tariff revenue, which has made electricity pricing a growing burden. Mayoral Committee Member for Energy Xanthea Limberg said the tender is part of the City’s effort to source cleaner and more affordable electricity from the open market.

What the Tender Means for Residents and Business

The City says the procurement drive is designed to strengthen Cape Town’s energy resilience while widening access to more affordable electricity for households and businesses. It also forms part of the metro’s broader energy strategy, which focuses on reducing costs, expanding supply options and building a more reliable local power system. The tender is open to Nersa-licensed energy traders and aggregators, with the City calling for proposals that can help deliver reliable and carbon-neutral power.

Deadline and Bigger Picture

Submissions for the tender close on 13 May 2026. Tender listings tied to the City’s bid describe it as a panel appointment for up to 500MW. The City also says this procurement model could help it participate more actively in the South African Wholesale Electricity Market, giving it another route to diversify supply beyond Eskom. If successful, the tender could become one of Cape Town’s boldest energy moves yet as it pushes for a more independent electricity future.