Eskom issues request for proposal to enable facilitation of investments in renewable energy generation infrastructure
12 April 2022
To encourage and enable investments in renewable energy generation infrastructure and give impetus to collaborative efforts to resolve South Africa’s electricity crisis, Eskom on Friday, 08 April 2022, issued a request for proposal (RFP) for leasing parcels of its land in Mpumalanga province to independent power producers (IPPs) for the addition of new renewable generation capacity.
The commercial process is based on auctioning suitable land at or near power stations for the development of renewable electricity generation sites, with the evaluation process favouring quick delivery of additional generation capacity to the system.
“This initiative is intended to allow investors accelerated access to our existing grid, and to enable investment in renewable energy next to our coal-fired power stations, to demonstrate our commitment to be part of the Just Energy Transition,” said André de Ruyter, Chief Executive of Eskom.
The maximum amount of electricity generation capacity per project will be capped at 100MW to make use of the recently promulgated upper limit for embedded and own generation, and the lease will be for a minimum period of 20 years. Eskom will provide connection up to the nearest network connection point. In terms of the scheme the land will remain the property of Eskom for the duration of the lease.