Cape Town is taking a bold step toward a more sustainable energy future. With a €150 million (R2.9 billion) loan from Germany’s KFW Development Bank, the city is set to strengthen its power grid and reduce dependence on Eskom’s unreliable electricity supply.
This investment will enhance the city’s grid infrastructure, allowing for greater integration of renewable energy and expanding access to cleaner power sources. Additionally, the funds may support municipal energy generation projects, helping Cape Town produce its own electricity.
According to KFW, the loan is designed to improve grid capacity so that more renewable energy can be transmitted efficiently. It will also help expand access to grid-connected households, ensuring more residents benefit from a stable and sustainable energy supply. Furthermore, the investment will support future clean energy initiatives that align with the city’s long-term sustainability goals.
The move aligns with a growing trend among South African cities to lessen reliance on Eskom, as surging electricity prices and power cuts continue to disrupt businesses and households. Recent rolling blackouts, among the worst in nearly a year, highlight the urgency of alternative energy solutions.
While feasibility studies will determine specific projects, several initiatives are being considered. One possibility is revamping the Steenbras Hydropower Plant, which could potentially double its current 180 MW capacity. Another focus area is the construction of a new solar plant to supplement municipal power generation and enhance energy security. Additionally, modernizing existing energy infrastructure is expected to improve efficiency and create a more resilient power grid.
Broadleaf Group supports innovative energy solutions that drive sustainability, resilience, and cost savings. As Cape Town moves forward with this significant energy shift, the city is positioning itself as a leader in South Africa’s clean energy transformation.