Eskom gets green light to launch new solar plants

The National Energy Regulator of South Africa (Nersa) has issued Eskom two licences to operate solar photovoltaic generation facilities, one for the Western Cape and the other for the Free State.

The decision to approve the licences was made during a meeting held on 29 October 2024. They will allow Eskom to operate its Sere and Lethabo solar power plants.

“The Energy Regulator approved the issuance of two licences to Eskom Holdings SOC Ltd to operate solar PV generation facilities, namely the Sere Solar PV Power Plant and Lethabo Solar PV Power Plant,” Nersa said.

The power stations will be alongside the current sites of the Sere and Lethabo Power Stations. Lethabo is currently coal-fired, while Sere generates energy using wind.

“Eskom applied for a licence to operate a 19.5MW solar PV facility located within Eskom Sere Power Station at Matzikama Local Municipality, Western Cape Province,” said Nersa.

“Eskom applied for a generation licence to operate a 75MW solar PV facility at the Eskom Lethabo Power Station on Farm no. 1814, Metsimaholo Local Municipality, Free State Province.”

The regulator notes that the applications were assessed in accordance with Section 7 of the Electricity Regulation Act. It added that the facilities aim to address the power shortage impacting South Africa’s economy.

Eskom issued a tender to procure the 75MW solar PV facility at Lethabo in April 2024, giving applicants until 4 June to submit their bids.

“The successful bidder will, in their experience, have taken part in the successful execution of at least one completed ground-mounted, grid-connected, front-of-meter Solar PV project within the last seven years, as the principal EPC Contractor,” the document said.

The following month, it issued a tender document for the Sere Solar Power Station and gave bidders until 12 September to apply.

“Sere Wind Farm is a 105.8 MW wind facility located near Vredendal in the Western Cape and entered commercial operation on 31 March 2015,” the document said.

“To address the urgent need for additional generating capacity, it has been proposed that solar PV technology be installed at the Sere Wind Farm site in phases.”

The tender document highlights three stages:

• Phase 1a — A solar plant with a capacity of less than 20MW, occupying less than 20 hectares.
• Phase 1b — Increase capacity to 50MW.
• Phase 2 — Increase capacity to 530MW.

“The execution of the proposed phases will result in the Sere PV Plant reaching total capacity of 600MW,” the document reads.

It said the urgent need for additional generation capacity and the project’s tight time constraints meant that Phase 1a’s capacity of less than 20MW didn’t require a full scoping and detailed Environmental Impact Assessment.

“It requires that Phase 1a adhere to environmental basic assessment technical requirements of a plant capacity that is less than 20MW and occupies land that is less than 20ha.”

In August 2021, Eskom revealed timelines and cost estimates for its wind and solar energy push at existing power stations. At the time, its renewable energy projects up until 2030 were expected to cost R106 billion.

The plan’s first phase, which included the early stages of the Lethabo and Sere solar plants, was intended to span from 2022 to 2023, but it was missed.

The first phase included renewable projects at the Arnot, Duvha, Lethabo, Majuba, and Tutuka Power Stations that are set to produce up to 246MW of solar energy.

An additional 100MW of solar energy could be built at the Komati Power Station and 19.5MW at the site of the Sere Power Station.

The second phase, slated to last from 2023 to 2024, would see the construction of a 750MW solar power plant at Olyvenhoutsdrift in the Northern Cape and the expansion of the Sere Solar Plant to 600MW.