City budgets about R1,2bn for Steenbras to help protect customers from load-shedding

18 April 2023

The City’s Building Hope Budget for 2023/24 proposes continued investment in its Steenbras Hydro Pumped Storage Scheme, laying the foundation for a potential estimated investment of approximately R1,2 billon over the next nine years on the maintenance and expansion of this plant. This is to continue its protection of customers against some of the impacts of load-shedding and to safeguard Cape Town’s electrical infrastructure. Read more below:

All due process will be followed in terms of regulatory and legislative requirements. Budget and execution of the professional services will determine the final budget and delivery programme.

‘Approximately R1 billion has been set aside for the refurbishment and extension of the Steenbras Hydro Pumped Storage Scheme and approximately R200 million is earmarked for the maintenance of Steenbras.

‘The investment in Steenbras and the maintenance programme is crucial to fulfilling our commitment to protect customers from a stage or two of load-shedding where possible, with plans to expand protection with up to four stages in the near future as part of the load-shedding protection plan. Importantly, all Capetonians benefit directly or indirectly from the City’s power generation management and load-shedding protection as it also protects critical City infrastructure used for service provision and protects the City’s electricity network,’ said the City’s Mayoral Committee Member for Energy, Councillor Beverley van Reenen.

The budget allocations enable the City to begin the process of delivering on the Mayor’s Energy Priority Programme to end load-shedding. It includes:

- R220 million on embedded independent power purchase

- R288 million on the Power Heroes programme which looks at voluntary power reduction in return for an incentive

- Estimate R1 billion investment in Steenbras (over the next nine years) subject to all due diligence and legal and regulatory processes

- R640 million on solar PV; R53 million Cash for Power programme, which involves selling excess power back to the City

- R50 million in Battery Storage

- R32 million on waste-to-energy

About the Steenbras Hydro Pump Station

The 160 megawatt Steenbras Hydro Pump Station (SHPS) consists of four turbines that are used to generate electricity.

During peak electricity demand, it channels water from Upper Steenbras to Lower Steenbras, through the turbine generator, to create electricity.

When electricity usage is low, usually between 23:00 and 07:00, the turbines pump the water back to the Upper Steenbras Dam to be re-used the next day. In this way, SHPS operates like a battery. The amount of electricity that it can generate in one day is limited by the capacity of the lower reservoir.

Cape Town is the only city in South Africa to own and operate a large pumped hydro-electric scheme.

- Regular maintenance and good management is imperative to ensure that this power station works well to offset high tariff and demand periods as well as to protect City-supplied customers from stages of load-shedding where possible.

Issued by Media Office, City of Cape Town, 18 April 2023