Eskom and AFD Ink Deal to Boost South Africa’s Green Energy Transition with the Tubatse PSS Project

In a significant move to bolster South Africa’s renewable energy infrastructure, Eskom, the country’s power utility, has secured a R125 million grant from the French development agency, Agence Française de Développement (AFD). The grant will fund the development of the highly anticipated Tubatse Pumped Storage System (PSS), situated in the Elias Motsoaledi Local Municipality, Limpopo.

This project is not just another green initiative; it is a cornerstone development in the realization of the country's Just Energy Transition (JET) Investment Plan. The introduction of this pumped storage system is key in managing the intermittency issues associated with renewable power sources such as wind and solar photovoltaic (PV) energy, providing consistent and reliable power to the grid.

Dan Marokane, Group Chief Executive (GCE) of Eskom, hailed this partnership as an integral element in the pursuit of a low carbon economy for South Africa. Marokane emphasized that large-scale facilities like Tubatse are crucial for the management of renewable energy, especially considering Eskom's ambitious plan to execute at least 2GW from over 20 GW of clean energy projects in the next three years.

In detailing the project, Eskom has described the Tubatse PSS as not just another hydro storage facility but a "mega installation" with a significant 1.5 GW generation capacity and a remarkable 21 GWh storage ability. Such a project is paramount to balancing the grid as the country accelerates the deployment of renewable energies under the JET framework.

With the R125 million grant, Eskom has outlined plans to work on a Public-Private Partnership model for the project, bringing in Transaction Advisors to facilitate a feasibility study and help select a private developer for the project’s implementation, slated for the years 2025 to 2033.

This financial backing will lay the groundwork for the feasibility study, aiding in the procurement of private development partners. It is a testament to the international support that South Africa’s pursuit of a greener, more sustainable energy future has garnered.

Ambassador of the European Union to South Africa, Sandra Kramer, illustrated the significance of such international partnerships. Kramer's address underscored the Global Gateway investment program’s alignment with South Africa's clean energy ambitions, providing a basis for stronger collaboration in the shared goal for a renewable energy-driven future.

Echoing this sentiment, AFD’s Regional Director for Southern Africa and the Country Director for South Africa, Audrey Rojkoff, reaffirmed AFD's commitment to Eskom's strategic diversification of energy mix and maintaining energy security—both essential to responding to the country's burgeoning energy demands and economic growth objectives.

This groundbreaking agreement between Eskom and AFD has thus set the stage for a transformative era in South Africa's energy landscape, promising resilience and sustainability in the power sector.