JOHANNESBURG — South Africa’s state-owned power utility, Eskom Holdings SOC Ltd., has broken ground on a 1.2 billion rand ($65 million) solar plant at one of its major coal stations, signaling a structural shift toward renewable energy after stabilizing the nation’s fragile electricity grid.
The 75-megawatt photovoltaic facility, located at the Lethabo Power Station in the Free State province, is expected to generate roughly 147 gigawatt-hours of electricity annually. That is enough to supply about 60,000 households, Eskom said in an emailed statement. The project represents a broader effort by the utility to stitch clean energy infrastructure directly into its legacy, fossil-fuel-heavy fleet.
The investment comes on the heels of a significant operational turnaround for Eskom, which recently marked more than a year without the rolling blackouts, locally known as loadshedding, that have hobbled Africa’s most industrialized economy for years. Group Chief Executive Officer Dan Marokane said the improved performance of the traditional coal fleet has finally created the stable economic baseline needed to phase in cleaner power under the government’s updated Integrated Resource Plan.
The Lethabo development is the opening salvo in a larger capital expenditure campaign. Eskom has identified 17 high-priority renewable projects to be built across its existing coal-fired footprint by 2028. The strategy aims to bring 6 gigawatts of new capacity online by the end of the decade by leveraging existing grid connections, land, and water infrastructure at sites like Arnot, Duvha, and Kusile a tactic meant to lower development costs and speed up deployment.
Eskom is financing the initial 2-gigawatt pipeline, slated for progression through 2026, using its approved capital expenditure budget. The funding complies with debt-relief conditions imposed by South Africa’s National Treasury, which restrict the utility from taking on additional project-finance borrowing on its own balance sheet.
For longer-term expansion, a dedicated division dubbed Eskom Green will target public-private partnerships and special purpose vehicles to shield the utility’s finances. This division plans to develop a pipeline of more than 32 gigawatts of renewable energy and storage projects by 2040. To hit those targets, Eskom intends to expand beyond its own land, pursuing strategic acquisitions and co-development deals in areas rich in wind and solar resources, alongside investments in battery storage and green hydrogen.