Power utility Eskom has issued a tender for the second phase of its land leasing programme, seeking to yield up to 500MW of new generation capacity from independent power producers (IPPs).
The initiative was launched in April 2022 and makes available some of the utility’s land to IPPs to create new electricity generating capacity.
This, as Eskom makes efforts to put an end to load-shedding, after failing to sustainably provide power, which has resulted in increased appetite for renewable energy.
On the tender, which closes on 27 February 2023, Eskom says: “During December 2022, Eskom issued a request for a proposal (RFP), as part of the second phase of the land leasing programme for four land parcels in Mpumalanga. We estimate the land put to tender can yield up to 500MW of new generation capacity from IPPs.
“These land parcels are in close proximity of network connection points, reducing the time required to build new grid connection infrastructure.
“Rather than buying the electricity from the IPPs, Eskom facilitates a process for the IPPs to be able to wheel the power over the Eskom grid, either for their own consumption, or to sell on to other consumers. Eskom wishes to work with the private sector to enable new capacity in line with the anticipated future, deregulated electricity industry.”
Eskom’s move comes as SA witnesses an upswing in renewable energy consumption, as businesses and households seek alternative sources for affordable and uninterrupted power supply.
Government has gazetted amendments to the electricity regulations to allow municipalities to bypass Eskom to buy their own renewable energy from IPPs.
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