File photo: African News Agency/ANA
CAPE TOWN - The City of Cape Town’s new R114 million industrial substation for Atlantis will see the area’s energy increase to more than double the current capacity, which is a welcome boost for the area that was recently declared as a special economic zone (SEZ).

The city announced on Monday that the substation had recently been commissioned to provide additional electricity and reliable services for businesses and residents in the area.

Constructed over four years, the new substation will hike existing capacity in Atlantis from 80 MVA (mega volt-amps ) to 170 MVA.

The capacity of the substation is roughly equivalent to lighting up more than 10 million light bulbs and also provides a grid connection point for future independent power producers, in line with the city’s drive to diversify its energy mix to include renewable energy.

Xanthea Limberg, the city’s mayoral committee member for informal settlements, water and waste services, and energy, said the new substation was set to enable commercial and industrial development in the area and was essential for the establishment of the Atlantis Special Economic Zone.

About 25 percent of the income the city made from electricity tariffs went toward the repair and maintenance of its electricity grid, which included new substations, power lines and meters, while 10 percent went toward the rates account to help pay for shared services and vulnerable groupings, she said.

“Lastly, some 65 percent is allocated to buy electricity from Eskom. While on the one hand , we must ensure that we save electricity as part of our commitment to environmental sustainability, the city must also ensure that it is able to meet urban growth demand, especially in areas such as the expanding West Coast Corridor,” said Limberg.

- BUSINESS REPORT