Lethabo: Eskom has broken ground on a new R1.2 billion 75MW solar power plant to be based at the Lethabo Power Station in the Free State, marking a major step in integrating renewable generation within the power utility's coal-fired power station-heavy fleet.
According to South African Government News Agency, the plant is expected to generate approximately 147GWh of electricity annually once completed, supplying power to an estimated 60,000 households. The project will also create local economic opportunities and contribute to skills development during both construction and operational phases, Eskom stated on Wednesday.
During a ceremony marking the start of construction, Eskom's Group Chief Executive, Dan Marokane, highlighted the improved performance of the coal-fired fleet, which is paving the way for the integration of renewable energy. He noted that Eskom had celebrated 365 days without loadshedding, thanks to the generation recovery plan executed by their skilled employees over the past three years.
Marokane emphasized that with a stable electricity platform now in place, South Africa's economy can grow, and renewable energy sources can be seamlessly integrated as required by the 2025 Integrated Resource Plan (IRP) to maintain future energy security. He mentioned that Eskom is focusing on its technical and institutional capability, built over decades of public investment, to deliver cleaner sources of energy.
Eskom's Group Executive for Renewables, Rivoningo Mnisi, described the solar power plant as a significant milestone in Eskom's renewable energy pipeline. It is part of the broader strategy to diversify the generation mix, support South Africa's Just Energy Transition objectives, and provide customers with lower carbon electricity.
According to Eskom, the solar power plant is one of 17 high-priority projects expected to be implemented across the electricity supplier's existing coal-fired power station footprint. These projects are expected to commence between now and 2028, representing 6GW of new capacity by the end of the decade.
The developments will be strategically located at power stations including Arnot, Duvha, Majuba, Tutuka, Lethabo, Komati, Kendal, Kusile, Hendrina, Camden, and Grootvlei. They will leverage existing infrastructure to accelerate deployment, reduce costs, and strengthen grid resilience. The Lethabo project is part of Eskom's construction-ready pipeline of at least 2GW of renewable energy and pumped storage projects progressing during 2026.
Funding for these projects is provisioned within Eskom's approved capital expenditure program and will be financed through on-balance sheet funding, in line with National Treasury debt relief conditions, without reliance on additional project finance borrowing, Eskom explained.
Eskom Green will adopt a proactive growth strategy extending beyond Eskom-owned land and existing decommissioning sites. Eskom Green will actively pursue partnerships, co-development opportunities, and strategic acquisitions of advanced-stage development projects and operating renewable assets in high-resource areas with superior wind and solar irradiation.
This strategy will enable Eskom to optimize its generation portfolio, diversify its revenue base, and ensure alignment with customer load profiles by balancing technological advancements like pumped-storage, wind, PV, BESS, and other alternatives such as green hydrogen. Eskom Green will provide a structure to facilitate utility-scale renewables through public-private partnerships, leveraging Eskom's existing footprint and system knowledge.
The proposed funding framework ensures limited recourse to the Eskom balance sheet using project finance principles for the renewable energy projects through dedicated project Special Purpose Vehicles.
