Eskom has started a process to find private partners for up to 6 GW of new renewable energy projects. The power utility said this is the size of six stages of load shedding.
The utility launched a Request for Qualification, or RFQ. It will be used to pick renewable energy groups for its Phase 1 Programme of large solar, wind and battery storage projects.
“The RFQ is the first stage of the procurement process and will establish a panel of pre-qualified strategic partners who may be invited to participate in future project-specific procurement opportunities,” Eskom said.
Eskom said the Phase 1 Programme covers up to 6 GW of projects. These include solar panels, battery energy storage systems, wind farms and other renewable technologies.
The utility said it will bring at least 2 GW of solar projects to the programme. It will also add 1 GW, or 4 GWh, of battery storage. Partners may add projects that they own or started themselves.
The chosen partners will join a panel for five years. They will help with building, funding and running the projects. Eskom said funding and project setups will be decided one project at a time.
According to Eskom, the programme aims to bring in money, skills and project experience from the private sector. The utility said it is part of its plan to use more types of power generation and give customers cleaner electricity.
The RFQ is being run for Eskom Green, a new company that is still being formed. Once it is set up, Eskom Holdings will own all of its shares. Eskom Green is the utility’s new business for large renewable energy projects.
“Eskom Green offers prospective partners a compelling platform, including a substantial pipeline of solar PV, wind and BESS projects, with sites and land rights at varying stages of maturity,” Eskom said.
Eskom said each of its own projects already has a site and land. Work on environmental approvals and access to the power grid is under way, the utility added.
The projects may be built on Eskom land and at its power stations. Some may also be projects owned by the partners. Each project is expected to sit in its own separate company, mostly funded through project finance loans.
Companies that qualify through the RFQ will later be allowed to bid in a Request for Purchase. Eskom said this depends on the terms of the RFQ.
For now, Eskom Holdings will manage the RFQ and later steps on behalf of Eskom Green. “From incorporation, Eskom Green may assume the administration of the process in whole or in part, and Eskom Holdings will notify respondents in writing when it does so,” Eskom said.
Source: this article is based on reporting by BusinessTech. Image: BusinessTech. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.