Eskom has revealed a request for proposals (RFP) to permit non-public operators to lease land round its coal-fired energy stations to construct photo voltaic farms to provide the grid with electrical energy.
Under Eskom’s plan, the state-owned firm will lease parcels of land in Mpumalanga – residence to lots of its coal-fired energy stations – so that non-public energy producers can construct renewable vitality capability at these websites.
“The commercial process is based on auctioning suitable land at or near power stations for the development of renewable electricity generation sites, with the evaluation process favouring quick delivery of additional generation capacity to the system,” Eskom stated in an announcement on Tuesday.
The publication of the RFP comes after public enterprises minister Pravin Gordhan introduced in December that Eskom would make massive tracts of land it owns in Mpumalanga obtainable to traders wanting to construct non-public energy technology crops.
Eskom has 89 000 acres of land within the province, little of which is being utilised. The thought is to make this land obtainable, on a rental foundation, to the non-public sector to construct renewable vitality amenities, Gordhan stated.
“This initiative is intended to allow investors accelerated access to our existing grid, and to enable investment in renewable energy next to our coal-fired power stations, to demonstrate our commitment to be part of the ‘just energy transition [to renewables],” stated Eskom CEO André de Ruyter in an announcement on Tuesday.
The publication of the RFP comes as Eskom as soon as once more struggles to maintain the lights on because of a scarcity of producing capability at its ageing and unreliable coal fleet.
“The maximum amount of electricity generation capacity per project will be capped at 100MW to make use of the recently promulgated upper limit for embedded and own generation, and the lease will be for a minimum period of 20 years,” Eskom stated. The land will stay the property of Eskom all through the lease.
Eskom defined that current legislative amendments enable energy mills to “wheel” electrical energy by way of the transmission grid, topic to wheeling expenses and connection agreements.
“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,” De Ruyter stated.
“It is estimated this programme could add further generation capacity, estimated at up to 4GW, to the national grid over the next few years,” Eskom stated. “The key objective for the leasing of land initiative is to provide relief to the constrained electricity system in as short a time as possible. Among these is the need to bring relief to the system by adding as many megawatts as possible in the shortest possible time, thus increasing the ability to do maintenance, reducing load shedding and the usage of open-cycle gas turbines.”
The cut-off date for submission of proposals is 29 April 2022 at 10am. – © 2022 NewsCentral Media