en.Wedoany.com Reported - South Africa's state-owned power utility, Eskom Holdings SOC Ltd., has begun construction of a solar power plant at one of its major coal-fired power stations, with an investment of 1.2 billion rand (approximately $65 million). This marks a structural shift toward renewable energy after the company stabilized the country's fragile power grid.
The 75-megawatt photovoltaic facility, located at the Lethabo Power Station in the Free State province, is expected to generate approximately 147 gigawatt-hours of electricity annually, enough to power about 60,000 households. In an emailed statement, Eskom said the project aims to directly integrate clean energy infrastructure into its traditional, fossil fuel-dominated generation portfolio.
This investment comes at a time of significant turnaround in Eskom's operations, as the company recently achieved a record of over one year without rolling blackouts (locally known as load shedding), which had plagued Africa's most industrialized economy for years. Group Chief Executive Officer Dan Marokane stated that improvements in the performance of conventional coal-fired units have finally created a stable economic foundation, enabling the gradual introduction of cleaner electricity in line with the government's latest updated Integrated Resource Plan.
The Lethabo project marks the beginning of a larger capital expenditure plan. Eskom has identified 17 high-priority renewable energy projects to be built on its existing coal power base by 2028, aiming to add 6 gigawatts of generation capacity by the end of this decade by leveraging existing grid connections, land, and water infrastructure at sites such as Arnot, Duvha, and Kusile. This strategy is designed to reduce development costs and accelerate deployment. Eskom is utilizing its approved capital expenditure budget to fund an initial 2-gigawatt pipeline expected to advance by 2026, with funds meeting debt relief conditions set by South Africa's National Treasury, which restricts Eskom from taking on additional project financing debt on its balance sheet.
For longer-term expansion, a dedicated unit named Eskom Green will target public-private partnerships and special purpose vehicles to protect Eskom's finances. The unit plans to develop a pipeline of over 32 gigawatts of renewable energy and storage projects by 2040. To achieve these goals, Eskom intends to expand beyond its own land, pursuing strategic acquisitions and cooperative developments in areas rich in wind and solar resources, while also investing in battery storage and green hydrogen.
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