Eskom calls for bids for 75MW solar plant construction in Lethabo

SOUTH AFRICA – Eskom Holdings, the state-owned power utility in South Africa, has initiated a tender for the construction of a 75 MW solar power plant near the Lethabo coal power station in the Free State province.

This move aligns with Eskom’s Just Energy Transition strategy, which aims to convert ageing coal power stations slated for retirement between 2030 and 2040 into renewable energy facilities.

Interested parties have a limited window to submit their proposals by June 4, 2024. The selected bidder will have the unique opportunity to be responsible for the full spectrum of activities, from design and engineering to maintenance, for the solar energy facility.

The planned solar project at Lethabo will be a single photovoltaic (PV) facility, potentially including both fixed-tilt mounting structures and single-axis trackers.

The shift towards renewable energy at Lethabo is part of Eskom’s broader strategy to navigate the transition away from coal. The power station, with an installed capacity of 3,708 MW across six units, is slated for decommissioning between 2036 and 2041.

However, Eskom intends to postpone this decommissioning to help address South Africa’s ongoing energy crisis.

Lethabo is just one of several power stations, including Groovlei and Komati, earmarked for repurposing into renewable energy plants.

The 56-year-old Komati coal-fired power plant ceased operations in October 2022, paving the way for its transformation into a renewable energy hub.

Plans for Komati include 150 MW of photovoltaic energy, 70 MW of wind generating capacity, 150 MW of Battery Energy Storage System, and a synchronous condenser.

Eskom secured significant financial backing to support repurposing the Komati power station. In November 2022, the World Bank approved a US$439.5 million loan for the project.

Additionally, Eskom received a US$47.5 million concessional loan from the Canadian Clean Energy and Forest Climate Facility (CCEFCF) and a US$10 million grant from the Energy Sector Management Assistance Program (ESMAP).

These funds underscore Eskom’s commitment to transitioning towards renewable energy and addressing South Africa’s energy needs sustainably.

In other news, Eskom has announced a potential easing of rolling power cuts during the upcoming winter months, citing improved prospects for its power station fleet.

Eskom, grappling with the challenge of ensuring uninterrupted power supply in South Africa’s highly industrialised economy, faced a particularly dire situation last year, marked by record-breaking outages averaging approximately 10 hours daily for many businesses and households.

The root causes of these persistent challenges include a backlog in maintenance at ageing coal-fired power stations, years of corruption, and tariff adjustments falling short of Eskom’s requested levels, which have resulted in a substantial accumulation of debt.

Speaking at his inaugural news conference since assuming the role of Chief Executive Officer in March, Dan Marokane acknowledged the strides made in enhancing power plant reliability.

He attributed this improvement to a series of interventions initiated about a year ago, which have reduced unplanned outages and trips.

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