Gas-to-power solutions could increase the supply of energy to the Western Cape | Western Cape Government

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Gas-to-power solutions could increase the supply of energy to the Western Cape

15 March 2024

The Western Cape Government (WCG) Energy Resilience Programme in the Department of Infrastructure (DOI) has appointed Africa International Advisers (AIA) to investigate the feasibility of gas-to-power (GTP) solutions to increase the supply of energy in the province, particularly liquefied natural gas (LNG) and green hydrogen (GH2). A final research report and position paper that incorporates stakeholder inputs is expected by the end of March 2024.

Informed by AIA’s work, DOI hopes to increase energy security and economic growth in the Western Cape through developing GTP policies and action plans for the short term (five years), medium term (ten years), and long term (20 years).

Other work done in the recent past to secure the province’s energy future was the launch in October 2023 of a DOI third-party electricity wheeling toolkit. Third-party electricity wheeling refers to private electricity generators using the Eskom or municipal grid to transmit electricity to a private electricity consumer. Authorities have a legal responsibility to allow third-party access to the electricity network. Extensive modelling has shown that third-party electricity wheeling can be implemented in way that protects municipal revenue streams.

The toolkit features a step-by-step third-party wheeling implementation guide; spreadsheets to assist municipalities to set fair tariffs for electricity wheeled through their distribution systems; and standardised templates for necessary agreements with third parties. It was developed with a range of specialist service providers in consultation with industry bodies, municipalities and private sector stakeholders.

These initiatives build upon the foundation laid by the Western Cape Energy Council, established in 2022 by Premier Alan Winde, to build a more sustainable and prosperous future for the province.