Eskom’s just energy transition project pipeline investments to cost more than R180bn

1st April 2022 By: Darren Parker - Creamer Media Contributing Editor Online

Power utility Eskom has identified a pipeline of about 15 projects in support of its just energy transition (JET) strategy, but substantial financing of about R180-billion to R199-billion will be needed for the projects to be implemented, Eskom JET GM Mandy Rambharos has said.

Speaking at the Fossil Fuel Foundation (FFF) Carbon’s Coal Conference 2022 held in Middelburg, Mpumalanga, on April 1, she said these projects included the Komati Gas, Sere photovoltaic (PV) and Olyvenhoutsdrift PV projects.

The list of projects also incorporated about 1 400 MW of microgrid power, which Rambharos said was based on a containerisation concept that allowed the microgrid – solar panels and batteries – to be easily transported and deployed wherever they were needed. The containerised microgrids would cost about R1.5-million each.

Altogether, the JET projects would add 244 MWh to the grid.

However, for this to be made possible, Rambharos said Eskom would have to strengthen its distribution and transmission infrastructure to accommodate the additional capacity.

This would include strengthening critical corridors on the distribution grid to enable the connection of independent power producers (IPPs) and other distributed energy resources. This alone would cost about R30-billion.

Then the rollout of microgrid solutions to electrify 13% of the population would cost another R15-billion.

These upgrades were being done to enable bidirectional energy management and flexibility and to facilitate an inverted energy economy, Rambharos said.

In terms of transmission, at least 8 000 km of transmission lines would be needed at a cost of about R120-billion. This expansion to the grid would be done to connect new capacity in line with the Integrated Resource Plan and the accelerated shutdown of aging coal-fired plants.

Eskom also aims to build 12 new substations across four provinces – Northern Cape, Western Cape, Eastern Cape and Free State – and install 110 transformers to strengthen the network up to 2030.

“Grid strengthening in the Northern Cape and Eastern Cape provinces is a key enabler for the rollout of new renewable capacity in these areas. Repurposing and repowering will allow for optimisation of grid capacity in Mpumalanga,” she noted.

Eskom’s JET drive is aimed at achieving net-zero carbon emissions by 2050, while simultaneously increasing sustainable employment.

Rambharos called for a change in the procurement and energy policy environments, saying these were not conducive to capacity deployments. She said energy, environmental, industrial and fiscal policy needed to be made more complementary and less contradictory.