“This is an exciting addition to the green economy in Cape Town,” mayor Patricia de Lille said after a guided tour with Western Cape Premier Helen Zille.
It symbolised the city's move from being a distributor of electricity to generating electricity in its goal of having 20% renewable energy as part of its energy mix.
The city wanted to give the citizens of Cape Town greater choice on what type of energy they wanted.
De Lille said she felt it was wrong that Eskom had a monopoly and forced the city to purchase its fossil-fuel power.
There were plans to challenge this in court, on the grounds that the city should be allowed to source energy directly from independent power producers.
The sprawling plan was thought to be the first of its kind in Africa, and would pave the way for more plants to turn rubbish into gas.
Zille said the project fit into the province's plans of being the hub of the green economy.
“We are driving it very hard because we see the prospects for South Africa.”
The project is a collaboration between Waste Mart and Clean Energy Africa, and will be run by New Horizons Energy.