NEWS RELEASE                                                                                                  12 June 2002

CAPE TOWN CIVIC CENTRE COULD BE FIRST IN SOUTH AFRICA TO USE "GREEN"ELECTRICITY FROM WIND TURBINES

The City of Cape Town has thrown its weight behind an exciting project - already in an advanced stage - to generate "green energy" from the first wind turbine facility of its kind in South Africa.

Leading the lobby in favour of environmentally friendly electricity is the City's Executive Committee member responsible for Trading Services, Councillor David Erleigh.

"As a starter, we are looking at the feasibility of purchasing some clean energy for use in the Cape Town Civic Centre," he said. "To ensure the success of the project, the energy needs to be sold to commercial and industrial consumers, and I would like to encourage the large oil companies and certain national government departments - among others the Department of Environmental Affairs - to follow our example and buy some of this electricity."

Councillor Erleigh stressed that taking "green energy" with its implied higher tariff would be entirely voluntary.

The project is being backed by the Department of Minerals and Energy Affairs, the National Energy Regulator, a major Danish wind turbine supplier and the Danish government.

It is the first wind farm project of this nature and scope to reach the point of implementation in South Africa, and the City's Electricity directorate has been engaged in talks for some time to purchase "green energy" with a view to onselling it at a "green", cost-reflective tariff. As is the case elsewhere in the world, the "green" tariff would be higher than the standard tariff currently charged by Eskom for power from coal and other power stations.

"In March this year South Africa signed the Kyoto Agreement, committing this country to look for ways of reducing greenhouse gases," said Councillor Erleigh. "It would be fitting and appropriate if we had something visible in place for the World Summit on Sustainable Development in Johannesburg in August."

Councillor Erleigh also wants the citizens of Cape Town to come forward and express their views on "green energy".

The Darling Independent Power Producer, an independent power producing firm, is driving the wind project which aims to explore and establish the technical, commercial and environmental viability of converting wind energy into electricity in the Western Cape and South Africa.

"Obviously the cost of the energy is higher than Eskom's current tariff, but it could appeal to environmentally aware consumers and, over time, could be a viable alternative to coal and gas," Councillor Erleigh said.

"Consumers would have to pay a premium, but the positive spin-offs of being seen to be doing something about cleaning up the environment would be enormous."

The Trading Services portfolio committee has supported a recommendation that the Director of Electricity in Cape Town undertake a market survey on the desirability of having a "green energy" tariff.

_______________________________________________________________________________________