Eskom leases land to companies for private renewable energy projects

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Eskom leases land to companies for private renewable energy projects: Partnership with companies producing green power is aimed at taking pressure off the grid

has signed lease agreements with four independent power producer investors for the use of land parcels worth R40-billion in investments.

“It is anticipated that the generators will be connected to the grid within 24 to 36 months from financial closure, subject to environmental, land zoning and other regulatory approvals,” Eskom CEO André deHe said these projects were independent of the renewable energy independent power producer bid window process and Eskom’s power purchase agreement requests to generate renewable energy.

This comes in response to Ramaphosa’s call for an ambitious and bold plan to address the energy crisis which has seen Eskom implementing rolling blackouts, due to limited energy reserves.De Ruyter said the companies were expected to invest about R40-billion to develop this “first batch” of private renewable energy projects on Eskom-owned land.

“The fact that these land leases will attract an estimated investment of some R40-billion to areas traditionally associated with coal-fired electricity generation makes this a compelling proof point for the just energy transition to a lower-carbon economy,” said De Ruyter. De Ruyter said the next phase of land leases would focus on properties around the Kendal and Kusile power stations in Mpumalanga, as well as the retired Ingagane Power Station in Newcastle, KwaZulu-Natal. These parcels would be offered to the market in the coming months.

 

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