Municipal pioneering in utility own-build renewable energy generation

The City of Cape Town (CCT) is developing a 7MW ground-mounted solar PV plant in Atlantis, marking the first utility-scale renewable energy project in South Africa owned and operated by a metropolitan municipality. Initiated in 2021 following a regulatory shift in the Electricity Regulation Act, the project aims to reduce reliance on Eskom and improve energy security. The CCT utilised a Corporate Project, Programme, and Portfolio Management (CPPPM) framework and an Engineering, Procurement & Construction (EPC) contracting strategy via an NEC4 DBO contract to mitigate risks, including unexpected groundwater issues and global solar panel price shocks. The plant, which includes a 5MW/10MWh battery energy storage system (BESS), is expected to be completed by April 2026, avoiding 12,524 tonnes of CO2e emissions per annum and providing significant cost savings compared to Eskom tariffs.

• The Atlantis solar PV plant is the first utility-scale renewable energy project in South Africa to be owned and operated by a metropolitan municipality, establishing a precedent for municipal energy autonomy.
• A critical regulatory breakthrough occurred in October 2020 when the Minister of Mineral Resources and Energy amended the Electricity Regulation Act (ERA) to allow financially sound municipalities to build generation capacity without prior ministerial determination, lifting the licensing threshold from 1MW to 100MW.
• The project's financial and technical specifications include a 7MW capacity (expandable to 10MW), a 5MW/10MWh battery energy storage system (BESS), and a CAPEX of R200 million. It is projected to avoid 12,524 tonnes of CO2e emissions annually and save approximately R400 million over its lifespan based on the cost difference between the plant (R0.55/kWh) and Eskom rates (R1.50/kWh).
• The City of Cape Town employed an Engineering, Procurement & Construction (EPC) strategy using the NEC4 Design, Build and Operate (DBO) contract. This approach transferred significant design and construction risks to the contractor, which proved effective when the CCT was shielded from the costs of removing unexpected groundwater from the site.
• The project faced a significant financial shock in 2022 due to a 50% increase in global solar panel prices. The CCT responded by conducting a Socio Cost Benefit Analysis (SCBA) and ultimately decided to reduce the project capacity to 7MW to maintain viability.
• The CCT utilised a Corporate Project, Programme, and Portfolio Management (CPPPM) framework with a stage-gate review system to ensure strategic alignment and risk identification throughout the project lifecycle.
• Community engagement was prioritised to build trust in Atlantis, including the recruitment of a Community Liaison Officer in July 2024 and a public competition to name the plant.

APA

GreenCape (n.d.). Municipal pioneering in utility own-build renewable energy generation. https://greencape.co.za/wp-content/uploads/2026/01/Atlantis-solar-PV-plant-case-study-FINAL-2.pdf

Chicago

GreenCape. Municipal pioneering in utility own-build renewable energy generation. n.d. https://greencape.co.za/wp-content/uploads/2026/01/Atlantis-solar-PV-plant-case-study-FINAL-2.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Municipal pioneering in utility own-build renewable energy generation |url=https://greencape.co.za/wp-content/uploads/2026/01/Atlantis-solar-PV-plant-case-study-FINAL-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendmunicipal, author = {{GreenCape}}, title = {{Municipal pioneering in utility own-build renewable energy generation}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2026/01/Atlantis-solar-PV-plant-case-study-FINAL-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }