Eskom aims to unlock 500 MW of renewables from second land-lease tender

26th January 2023 By: Terence Creamer - Creamer Media Editor

Eskom aims to unlock 500 MW of renewables from second land-lease tender

Photo by: Creamer Media

Eskom will host site visits on February 7 for independent power producers (IPPs) interested in four new parcels of grid-ready land in Mpumalanga that the utility will make available under its long-term lease programme for the development of up to 500 MW of renewable-energy generation.

The request for proposals (RFP), which was published in December, marks the launch of the second phase of the Land Lease Programme launched in April last year and focuses on land parcels within the borders of the Lekwa and Victor Khanye local municipalities.

During the first phase, 17 land parcels around the Majuba and Tutuka power stations, also in Mpumalanga, were made available.

In October, Eskom concluded 25- to 30-year lease agreements for land covering a total of 6 184 ha with five IPPs, namely HDF Energy South Africa, Red Rocket, Sola Group and Mainstream Renewable Power Developments South Africa.

It is estimated that those initial parcels could accommodate renewables projects with a combined capacity of 1 800 MW and a recently released National Energy Crisis Committee roadmap indicated that the land-lease programme could help add 2 142 MW after 2024.

Eskom said the new land parcels being released were also in close proximity to network connection points, which would reduce the time required to build new grid connection infrastructure.

Access to the grid has emerged as a key constraint to renewables development, particularly in the Cape provinces and Eskom is, thus, hoping to attract investors to areas where its network is less limited, but where the solar and wind resources are less potent.

The utility also reiterated that it would not be the buyer of the electricity arising from the sites, but would facilitate a process to enable the IPPs to wheel the power over the Eskom grid, either for their own consumption, or to sell on to other consumers.

The closing date for the RFP is 10:00 on February 27.