Eskom and Agence Française de Développement (AFD) have signed a R125 million grant agreement to assist the event of the ability utility’s Tubatse Pumped Storage System (PSS) undertaking.

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The hydro storage system undertaking is positioned within the Elias Motsoaledi Local Municipality in Limpopo and has been billed as a prime precedence undertaking by the Infrastructure South Africa Programme.

Pathway to attain low carbon economic system targets

Eskom Group Chief Executive (GCE), Dan Marokane, stated the grant will present South Africa and the ability utility with one other pathway to attain its low carbon economic system targets.

“Without large-scale facilities such as Tubatse, the management of intermittent power from renewable energy – wind and PV [photovoltaic] – would be very difficult without the kind of intervention that pump storage systems offer,” he stated on Thursday.

The GCE added that the ability utility has “developed a pipeline of more than 20 GW of clean energy projects to diversify its energy mix and reduce its emissions related to fossil fuel generation”. 

“Over the next three years we have an ambition to execute at least 2GW of these projects. The clean energy projects will consist of a diversified capacity mix of renewable energy solar PV and wind, hydro, gas, nuclear and pump storage,” Marokane stated.

The energy utility described the Tubatse Pumped Hydro Storage System as a “mega installation with a power generation capacity of 1.5 GW” with a storage capability of 21 GWh.

“Large-scale storage and grid companies equivalent to these are essential to accommodate the fast growth of renewable power in South Africa, as deliberate by means of the Just Energy Transition (JET) Investment Plan.

“Eskom plans to develop the Tubatse PSS undertaking as a Public-Private Partnership and can intend to acquire the companies of a Transaction Advisor to conduct a radical Private Sector Participation feasibility research and enterprise case within the first quarter of 2026. 

“This Transaction Advisor, to be financed by said grant funding, will support Eskom in procuring a private developer for the project’s implementation, which is scheduled for the 2025–2033 timeframe,” Eskom stated.

Ambassador of the European Union to South Africa, Sandra Kramer, stated of the grant settlement: “The partnership between Team Europe and South Africa continues to deepen. We are rolling out our Global Gateway investment programme in crucial areas such as the green energy transition. 

“The Global Gateway grant funding provided here today will further unlock the immense potential for renewable energy and support South Africa to realise its ambitions for a greener tomorrow”.

AFD’s Regional Director for Southern Africa and Country Director for South Africa, Audrey Rojkoff, added: “AFD’s funding to Eskom reaffirms our commitment to support Eskom’s efforts to diversify its energy mix and maintain energy security, which will ultimately strengthen its capacity to respond to the growing energy needs and economic growth of South Africa”.

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