Eskom<\/a>\u00a0reports that repowering\u00a0projects<\/a>\u00a0with a combined capacity of 5 GW are currently under development across six\u00a0coal<\/a>\u00a0power<\/a>\u00a0station sites and that it is aiming to implement 2 GW by 2026, mostly through public-private partnerships (PPPs).<\/p>\n\n\n\n In a presentation to the Portfolio Committee on Electricity and Energy<\/a>, the State-owned company said the projects<\/a> formed part of the repowering component of its Just Energy<\/a> Transition (JET) strategy, which was also central to \u201ckickstarting\u201d a broader aspiration to introduce 20 GW of clean generation<\/a> by 2040.<\/p>\n\n\n\n Group executive for generation<\/a> Bheki Nxumalo<\/strong> reiterated that the JET strategy \u2013 which involved both \u2018repowering\u2019 the sites using renewables, battery and even gas<\/a> technologies, as well as \u2018repurposing\u2019 of power<\/a> station assets for alternative economic activities, such as training<\/a>, manufacturing<\/a> and farming \u2013 had been decoupled from the coal<\/a> shutdown plan to create \u201cbreathing space\u201d for better planning and implementation.<\/p>\n\n\n\n The decoupling followed criticism that the closure of the Komati power<\/a> station took place before the repowering and repurposing projects<\/a> were fully funded or ready for implementation.<\/p>\n\n\n\n It has also been facilitated by the fact that Eskom<\/a> received permission from government to continue to operate Hendrina, Grootvlei, Arnot, Camden and Kriel, which were meant to have been decommissioned during the 2020s, at existing minimum emission standards plant limits until March 31, 2030.<\/p>\n\n\n\n Group executive for renewables Rivoningo Mnisi<\/strong> revealed that, besides Komati, JET strategies had been approved for Hendrina, Camden, Grootvlei, and were at an advanced stage for Arnot and Kriel.<\/p>\n\n\n\n At Komati, where the repowering plan involved 122 MW of solar<\/a> PV and a 150 MW battery energy<\/a> storage<\/a> system<\/a> (BESS), contractors had been shortlisted for the supply and installation<\/a> of a 72 MW solar<\/a> PV plant and 150 MW BESS facility, with contract awards expected in the coming months.<\/p>\n\n\n\n However, Mnisi described developments at Grootvlei as \u201ca living example of how JET should be implemented\u201d, explaining that the repowering and repurposing initiatives had been divided into two phases, with the first phase to proceed ahead of the plant\u2019s 2030 retirement.<\/p>\n\n\n\n For instance, the plan to build 195 MW of solar<\/a> PV at the station had been broken into two, with the first 100 MW to be implemented by 2029 together with a 150 MW BESS project<\/a>. The second 95 MW of solar<\/a> PV would be implemented after the dead stop date for the station, where Eskom<\/a> was also aiming to introduce two synchronous condensers; a technology<\/a> that will help maintain grid stability as the penetration of variable renewable energy<\/a> rises.<\/p>\n\n\n\n A similar staged approach would be adopted for the repurposing projects<\/a>, which included a 5-ha climate-smart horticulture centre, a 15-ha commercial agricultural project<\/a>, a training<\/a> centre, and possible ash beneficiation projects<\/a>.<\/p>\n\n\n\n Likewise two-phase development planning is under way at the other four stations to ensure the emergence of new electricity and non-electricity activities prior to decommissioning, and with plans to scale these up further following the ramp down of the final units.<\/p>\n\n\n\n Eskom<\/a> again confirmed that the repowering initiatives being developed at the four stations included:<\/p>\n\n\n\n Wind and BESS projects<\/a> were also being developed for Camden and Hendrina.<\/p>\n\n\n\n Mnisi indicated that, owing to Eskom<\/a>\u2019s balance sheet constraints, the projects<\/a> would be pursued as PPPs and could involve blended finance that included both development and commercial finance.<\/p>\n\n\n\n \u201cWhat is key is how we go to market with these initiatives and one of the key things we are working on very closely is around our PPP model,\u201d he reported.<\/p>\n\n\n\n \u201cFrom what we see, there is no shortage of funding to support the clean-energy<\/a> initiative, what is more important is the governance structures to allow for the PPPs and for the funding model to take place.\u201d<\/p>\n\n\n\n Group executive for strategy and sustainability Nontokozo Hadebe<\/strong> indicated that Eskom<\/a> planned to use a modest portion of the R521-billion capital expenditure earmarked in its five-year corporate plan to help \u201ccatalyse\u201d its renewables and gas<\/a> investments.<\/p>\n\n\n\n \u201cBut we are mindful that not everything can be funded internally, so we will be relying quite a lot on private sector partnerships,\u201d she said.<\/p>\n\n\n\n No specific mention was made of the recent decision by the Climate Investment Funds (CIF), which is backed by six multilateral development banks, to approve an update to South Africa<\/a>\u2019s Accelerating Coal<\/a> Transition investment plan, which had been in doubt after Eskom<\/a> delayed the decommissioning of Camden, Grootvlei, and Hendrina power<\/a> stations from 2027 to 2030.<\/p>\n\n\n\n\n