University Of Cape Town Signs Landmark Renewable Power Deal To Cut Emissions By 90%

The University of Cape Town (UCT) has taken a major step toward sustainability by signing a long-term renewable electricity supply agreement with Discovery Green. The agreement makes UCT the first public university in South Africa to enter into a power purchase agreement with a commercial energy trader. The contract is expected to begin in the third quarter of 2027 and will run for nearly ten years.

Under the agreement, Discovery Green will supply renewable electricity that will meet approximately 90% of the power needs of the university’s Main Campus and Health Sciences Campus. The initiative is expected to significantly reduce the university’s environmental impact by cutting indirect carbon emissions from electricity consumption by around 90%.

According to Manfred Braune, Director of Environmental Sustainability at UCT, the university faces unique challenges in expanding on-site renewable energy generation. Many of its buildings are heritage structures, which restrict the installation of large-scale rooftop solar systems. As a result, the university has chosen to secure renewable energy through an off-site procurement model known as energy wheeling.

Through this arrangement, electricity generated by a network of solar and wind power projects will be supplied to South Africa’s national electricity grid. Although the renewable electricity does not physically flow directly to the university’s campuses, UCT will receive financial credits based on the value of the green energy delivered to the grid. These credits help offset the institution’s electricity costs when compared with conventional utility tariffs.

UCT Vice-Chancellor Professor Mosa Moshabela welcomed the partnership and highlighted its importance for both the university and the broader public sector. He noted that the agreement demonstrates how public institutions can actively contribute to South Africa’s clean energy transition. He also emphasized that large-scale renewable energy procurement can help reduce environmental impacts, manage rising electricity costs, and improve resilience against electricity supply challenges.

Beyond supplying renewable electricity, the agreement also includes significant educational and research benefits. Discovery Green will provide annual funding to support energy-related research, innovation projects, and skills development initiatives at the university. The partnership aims to strengthen academic contributions to South Africa’s growing renewable energy sector.

In addition, Discovery Green will fund targeted undergraduate scholarships in the engineering and actuarial science faculties. These scholarships are intended to help develop the next generation of professionals equipped with the technical knowledge and expertise required to support the country’s transition to a cleaner and more sustainable energy future.

The agreement marks an important milestone for higher education and renewable energy development in South Africa, combining environmental responsibility with long-term educational and economic benefits.