Cape Town – Eskom and Agence Française de Développement (AFD) have signed a R125 million grant agreement to support the Tubatse Pumped Storage System (PSS) project in Limpopo, aimed at enhancing South Africa’s renewable energy capacity.
Eskom’s Group CEO Dan Marokane said that the grant offers a new opportunity for both the power utility and South Africa to advance their low-carbon economy objectives.
“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 said on Thursday.
The system, with a 1.5 GW generation capacity and 21 GWh storage, will help manage intermittent power from renewable sources.
“Large-scale storage and grid services such as these are necessary to accommodate the rapid development of renewable energy in South Africa, as planned through the Just Energy Transition (JET) Investment Plan.
“Eskom plans to develop the Tubatse PSS project as a Public-Private Partnership and will intend to procure the services of a Transaction Advisor to conduct a thorough Private Sector Participation feasibility study and business case in 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 said.
The project aligns with South Africa’s green energy goals under the Just Energy Transition (JET) Investment Plan.
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Compiled by Betha Madhomu
