City of Cape Town says future IPP rounds will cater for wheeling, but not round one

The City of Cape Town has defended its decision not to accept bids for wheeled electricity as part of its first independent power producer (IPP) procurement round but says future tenders will cater for wheeling. The city aims to enter into 20-year power purchase agreements (PPAs) with multiple tenderers but stipulates that every component power generation plant “must connect directly to the city’s network and no wheeled energy from generators connected to grids other than the city’s grid will be purchased”.