Thursday, 26 January 2023: During December 2022, Eskom issued a Request For a Proposal (RFP), as part of the second phase of the Land Leasing Programme for four land parcels in Mpumalanga. We estimate that the land put to tender can yield up to 500MW of new generation capacity from independent power producers (IPPs).
The tender can be viewed on the Eskom Tender Bulletin on the Eskom website: https://tenderbulletin.eskom.co.za/Tenders/Docs?TENDERID=62519. The tender will close on 27 February 2023.
Eskom’s Land Lease Programme was launched in April 2022. Through this programme, Eskom makes available some of its land to IPPs for the purposes of creating new electricity generating capacity. These land parcels are in close proximity of network connection points, reducing the time required to build new grid connection infrastructure.
Rather than buying the electricity from the IPPs, Eskom facilitates a process for the IPPs to be able to wheel the power over the Eskom grid, either for their own consumption, or to sell on to other consumers. Eskom wishes to work with the private sector to enable new capacity in line with the anticipated future, deregulated electricity industry.
In April 2022, Eskom issued an RFP, as part of the first phase of the Land Leasing Project, for the leasing of 17 land parcels in Mpumalanga province around the Majuba and Tutuka Power Stations.
In October 2022, Eskom concluded lease agreements with five IPPs for the development of an estimated 1 800MW of new generation capacity.
The IPPs are currently busy with project development and the required regulatory processes. Eskom is working closely with the IPPs and government to unlock key barriers such as environmental approvals, land rezoning and grid connection applications, in order to get the power onto the grid as soon as possible.
Eskom sees this as the continuation of a very promising project and plans to extend this to other areas and provinces where we have unused land that can be used for this purpose.