Eskom to lease land to renewable energy developers

South African utility Eskom Holdings SOC last week announced the issuance of a request for proposals (RfP), offering to lease land for renewable energy projects, each no bigger than 100 MW, in the Mpumalanga province.

Eskom wants to lease parcels at or near power stations to independent power producers (IPPs) for at least 20 years, with the auction process to favour quick delivery of additional generation capacity. Proposals are due by April 29.

The move is aimed at supporting investment in renewable energy and helping to tackle South Africa’s electricity crisis.

The 100-MW cap takes advantage of a recently enacted upper threshold for embedded and own generation.

“Investors will be able to enter into bilateral agreements with customers, on terms that they agree, while Eskom will provide the transmission infrastructure to evacuate the electricity. This arrangement is a precursor of the electricity market that is enabled by the legally separated transmission company,” said Eskom chief executive Andre de Ruyter.

The changes allow Eskom to lease properties close to its power stations to the private sector. It said the programme could add up to an estimated 4 GW to the grid over the next few years.

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