Eskom said the key objective of this initiative is to provide relief to the constrained electricity system in as short a time as possible. There is a dire need to alleviate pressure on the system by adding as many megawatts as possible in the shortest possible time, thus increasing Eskom’s ability to conduct maintenance at its existing fleet, reducing load shedding and the usage of open cycle gas turbines (OCGTs).
It is expected that the generators will be connected to the grid within 36 to 48 months from financial closure, subject to environmental and other regulatory approvals. Schedule 2 of the Electricity Regulation Act of 2006 permits independent power generators to wheel electricity through the transmission grid, subject to wheeling charges and connection agreements with the relevant transmission or distribution license holders.
Eskom’s land leasing programme is a first of its kind and could be used as a case study in the electricity supply industry (ESI) in terms of partnering with private electricity generators to accelerate the connection of additional capacity to the national grid to improve the reliability of supply. South Africa’s Renewable Independent Power Producer Programme (REIPPP) has seen IPPs establishing themselves in areas with the greatest renewable resources, but unfortunately where there is minimal grid capacity to evacuate the power. By making land available close to the power stations, where there is grid capacity, Eskom is redirecting where IPPs can establish their plant to fast-track the time to connect.
Feasibility studies commenced with the launch of the Eskom procurement process, this approach allowed us to put in proposals to Eskom that we believed would be acceptable to Eskom and sustainable to the projects. These project sites are more suitable for solar and will also incorporate a storage component.