Eskom land lease could see SA get 1800 MW boost to the grid

Eskom has identified 18 companies to lease land for sustainable energy projects.

  • Eskom has selected 18 companies to lease land to develop sustainable energy projects.
  • They will add 1,800 MW of generation capacity to the grid.
  • None of the leases have been signed yet because the companies have environmental impact assessments.

South Africa’s limited energy system could soon receive a boost of 1800 MW.

Eskom confirmed on Thursday that it had selected 18 companies to lease land for the development of renewable energy projects.

The energy company announced in December plans to lease parts of its land in Mpumalanga to potential renewable energy projects to help strengthen generational capacity. The country is close to transmission lines, which ensures access to not for the projects. Eskom started the tender process in April.

The initiative makes use of regulatory changes, which could allow licensing exemptions for generation facilities of up to 100 MW.

In a statement, Eskom said that none of the contracts had been signed because the companies need to get clearance for environmental impact assessment.

“The companies cannot be named because no contracts have been signed yet. Eskom will make an announcement of the successful companies when all processes are finalized,” the statement said.

More income, less bureaucracy

The bids will cover 4,000 hectares of land, out of a total of 36,000 hectares available.

“The current projects will bring a total of 1,800MW of generation capacity online, once connected,” the statement read.

“We hope to sign the lease agreements with the successful bidders by August,” said Eskom CEO Andrè de Ruyter.

“This shows what can be achieved with less bureaucracy and the consequences of the liberalization of the energy sector. That extra capacity comes at no cost to the taxpayer.”

Eskom needs to earn some income from leasing land. The projects will also create sales agreements for the electricity with third parties.

Eskom is currently carrying out Phase 2 load shedding due to generation unit defects that do not limit it.

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Eskom land lease could see SA get 1800 MW boost to the grid

Source link Eskom land lease could see SA get 1800 MW boost to the grid

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