Eskom brings in IPP partners

ESKOM has partnered with independent power producers in a bid to address the energy crisis in SA.

It signed land lease agreements with five independent clean power generators at two of its power stations in Mpumalanga for the construction of new clean energy generation capacity.

The investors will lease 6 184ha of land for between 25 and 30 years each, and aim to contribute about 2 000MW to the national electricity grid.

The power utility also plans to make more land available around its power stations where there is sufficient grid capacity to connect clean energy producers.

The successful bidders are HDF Energy South Africa, Red Rocket SA, Sola Group and South Africa Mainstream Renewable Power Developments.

Eskom has also concluded power purchase agreements with third parties, and the power will be distributed through Eskom’s infrastructure, helping to alleviate generation capacity constraints.

Eskom said the key objective of the initiative was to provide relief to the constrained electricity system as fast as possible, increasing its ability to maintain its existing fleet, reduce load shedding and use of open-cycle gas turbines.

This first batch of lease agreements signed with private companies involves land parcels around the Majuba and Tutuka power stations. The next phase will focus on properties around the Kendal and Kusile power stations in Mpumalanga, as well as the retired Ingagane power station in Newcastle, KwaZulu-Natal.

It is expected the generators will be connected to the grid within 36 to 48 months.