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- Eskom has been given the go-ahead to procure 344.5MW of new generation capacity from solar PV and battery storage, say Nersa.
- The 194.5MW of solar PV is to be procured at the Lethabo and Komati power stations and Eskom's Sere Wind Farm.
- Komati will also be allowed to procure 150MW of battery storage.
- For climate change news and analysis, go to News24 Climate Future.
Eskom is allowed to procure more renewable energy and battery storage capacity, according to the National Energy Regulator of South Africa (Nersa).
Nersa, in a statement, said that last week Thursday, it had given its concurrence to Mineral Resources and Energy Minister Gwede Mantashe's draft section 34 determination that the power utility procure 344.5MW of new generation capacity and battery storage.
Eskom can now issue tenders for 75MW of solar PV at its Lethabo Power Station in the Free State, 19.5MW of solar PV at the Sere Wind Farm in the Western Cape and 100MW of solar PV at Komati power station in Mpumalanga.
Komati will also be able to procure 150MW of battery energy storage.
Komati, a coal-fired power station, decommissioned its last unit in October last year.
But Eskom has plans to repurpose it with renewable energy so the plant can have a second life.
In response to questions, Eskom said the 250MW solar PV and battery storage for repowering of Komati would be funded on its balance sheet. This is because the project was approved, and funding was secured before National Treasury put in place conditions for debt relief.
Earlier this year, when Treasury indicated government would take on R254 billion of Eskom's debt - one of its conditions was that capital expenditure by the power utility is strictly meant for expanding its transmission and distribution network and not new generation capacity.
"For the balance of the 344.5MW (75MW and 19.5MW PV at Lethabo and Sere power stations) the National Treasury conditions do apply..." Eskom said. This means a public private partnership approach will be taken for this renewable energy.
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Eskom also said it is still waiting for Nersa's concurrence for a 3 000MW gas plant in Richards Bay.
"Given the National Treasury debt relief conditions, Eskom will most likely not be able to do the project 'on balance sheet', as significant spending will be required in the next three years. Eskom is engaging National Treasury on an alternate approach. A Public Private Partnership model, an IPP model or derivatives thereof will be the most likely mechanisms for the project," Eskom said.
Eskom said that once it gets the go-ahead in terms of the Nersa process for the gas plant, as well as National Treasury support, an "appropriate funding model" will be developed as well as a detailed business case and an "appropriate" procurement process will be launched.
With all this considered, the gas plant is expected to come online by the end of 2028.
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