Cape Town residents could receive electricity savings of at least 400 million rand over the next twenty years following the launch of a hybrid power station built by the South African municipality in Atlantis. This represents a significant step in the City's efforts to reduce dependence on Eskom and ensure more affordable electricity.
Mayor Geordie Hill-Lewis officially unveiled the R220 million Helderhuup Solar-Storage Power Station on Thursday. The facility covers an area of 15 hectares, equivalent to approximately 21 football fields, and is equipped with 12,850 solar panels and two large battery banks.
Despite the completion of construction, the power station is not yet operating at full capacity and is undergoing controlled testing as part of the commissioning process. Hill-Lewis emphasized that the project is a vital investment in Cape Town's energy future, especially against the backdrop of rising household electricity costs.
Direct Financial Benefits
He noted that the key advantage of the new power station is that the energy it generates is significantly cheaper than Eskom's, which will allow Cape Town residents to save at least 400 million rand over the next 20 years. The Mayor stated the intention to reduce reliance on expensive Eskom energy and its annual increases to pass these savings on to Cape Town residents over time.
However, the projected savings will not lead to an immediate reduction in household electricity tariffs, as the City has not yet announced when residents can see direct financial benefits. The complex combines solar energy generation with battery storage, allowing some of the energy produced during the day to be saved for later use. According to early City information on the project, the initial solar generation capacity is 7 MW, and the battery storage capacity is 10 MWh. Furthermore, the project created about 305 jobs during construction.
Jobs Created
Member of the Municipal Energy Committee, Alderman Xanthea Limburg, reported that the project provided workers with the opportunity to gain valuable experience in renewable energy infrastructure. Limburg thanked City officials, design teams, contractors, local businesses, and most importantly, the Atlantis community for helping realize Helderhuup.
In addition to electricity savings, the project holds special significance for Atlantis, which celebrates its 50th anniversary this year. The name Helderhuup, meaning 'Bright Hope', was suggested by local student Vinoliwe Kloete, who participated in a public naming competition while attending Saxonsea High School. Explaining her choice, Kloete said that the name combines the idea of light and energy with hope for a better future for Atlantis.
Hill-Lewis clarified that this project is part of broader investments in the area, including a R31 million upgrade to the Wesfleur stadium, improvements to MyCiTi bus stops, and ongoing investments in the Atlantis Special Economic Zone. Meanwhile, the City is expanding its power sources beyond Eskom through agreements with independent power producers. Two recently signed power purchase agreements will secure 70 MW of electricity from solar projects in Atlantis and the Philippines, with the City reporting procurement prices that are 21% lower than Eskom tariffs. The municipality also plans to build another 70 MW hybrid solar and battery facility in Paarl Valley by 2029.
Reports indicate that the City's energy efficiency initiatives have saved approximately 625 million rand, and residents and businesses have earned 67 million rand by selling surplus rooftop solar energy back to the City since June 2024.