By Karabo Marifi
Eskom and Agence Française de Développement (AFD) have entered a R125 million grant agreement to support the Tubatse Pumped Storage System (PSS) project, a large-scale hydro storage initiative in Limpopo’s Elias Motsoaledi Local Municipality. This development, announced on Thursday, is part of South Africa’s efforts to strengthen its green energy transition and secure energy stability through innovative infrastructure solutions.
This grant from AFD, a major development finance institution, will facilitate the preliminary stages of the Tubatse PSS, including funding for essential feasibility studies. The project is identified as a priority under the Infrastructure South Africa Programme, reflecting its significance in the country’s shift toward a low-carbon economy. Eskom’s Group Chief Executive, Dan Marokane, highlighted the Tubatse project’s strategic role, saying, “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.”
The Tubatse Pumped Storage System: A Key Element in South Africa’s Energy Mix
The Tubatse Pumped Storage System is envisioned as a substantial facility with a power generation capacity of 1.5 GW and a storage capacity of 21 GWh. It is designed to support the country’s Just Energy Transition (JET) Investment Plan, accommodating the increasing share of renewable energy sources in South Africa’s energy grid. By storing and releasing energy as needed, pumped storage facilities like Tubatse are critical in balancing the variable output of renewable sources such as solar and wind.
As Eskom transitions from a predominantly coal-based energy provider to a more diverse and sustainable energy mix, projects like Tubatse will play a crucial role. Marokane emphasised Eskom’s commitment to clean energy, sharing that the power utility has developed a “pipeline of more than 20 GW of clean energy projects” to diversify its energy resources and cut emissions from fossil fuel generation. Over the next three years, Eskom aims to implement at least 2 GW of these projects, which will include a mix of solar PV, wind, hydro, gas, nuclear, and pumped storage.
Strategic Support for Public-Private Partnerships
The Tubatse project is also being structured as a Public-Private Partnership (PPP), and Eskom intends to recruit a Transaction Advisor funded by the AFD grant to lead a detailed Private Sector Participation feasibility study. This study, planned for the first quarter of 2026, will assess the project’s business case, with a goal of selecting a private developer for project implementation. Eskom anticipates that construction will commence within the 2025–2033 timeframe.
By attracting private sector involvement, Eskom aims to leverage expertise and investment that can expedite the implementation of the Tubatse PSS project. This PPP approach aligns with global trends in renewable energy projects, where public-private collaborations drive infrastructure development while mitigating financial risks for government entities.
Strengthening South Africa’s Just Energy Transition
Eskom’s Tubatse PSS project aligns closely with South Africa’s broader Just Energy Transition (JET) strategy, which aims to reduce carbon emissions while fostering economic growth and job creation. The JET framework prioritises investments in renewable energy, supporting a shift away from coal dependency while ensuring sustainable development for communities affected by the transition.
AFD’s Regional Director for Southern Africa, Audrey Rojkoff, reiterated the organisation’s support for Eskom’s transition efforts, noting, “AFD’s funding to Eskom reaffirms our commitment to support Eskom’s efforts to diversify its energy mix and maintain energy security, which will ultimately strengthen its capacity to respond to the growing energy needs and economic growth of South Africa.”
Collaborative Efforts with Team Europe and Global Gateway Initiative
The Tubatse PSS project also symbolises a deepening partnership between South Africa and international stakeholders, including Team Europe and the European Union’s Global Gateway programme. Sandra Kramer, the European Union Ambassador to South Africa, highlighted the significance of the grant agreement as part of a larger investment strategy. “The partnership between Team Europe and South Africa continues to deepen. We are rolling out our Global Gateway investment programme in crucial areas such as the green energy transition,” Kramer stated.
The Global Gateway initiative is the EU’s €300 billion infrastructure strategy, which aims to support sustainable development in partner countries through investments in green energy, digital connectivity, and transport infrastructure. South Africa’s involvement in this programme exemplifies its potential as a leader in Africa’s energy transition.
Enhancing Eskom’s Clean Energy Portfolio
With ongoing challenges in South Africa’s energy sector, including ageing coal infrastructure and load-shedding, Eskom’s shift to clean energy has become imperative. The Tubatse PSS will complement Eskom’s existing fleet of renewable energy projects, providing a reliable source of stored energy that can be released during peak demand periods. This capability will help stabilise the grid and reduce reliance on fossil fuel power plants.
By integrating hydro storage solutions like Tubatse, Eskom is addressing one of the critical obstacles to renewable energy deployment: energy intermittency. Pumped storage systems work by moving water between two reservoirs at different elevations, using surplus electricity during off-peak hours to pump water uphill. When energy demand spikes, the water is released downhill through turbines, generating electricity on demand. This process makes pumped storage one of the most efficient forms of energy storage available.
Future Outlook for South Africa’s Green Economy
As South Africa moves closer to achieving its energy transition goals, the Tubatse Pumped Storage System is set to be a model for future infrastructure projects. By prioritising renewable energy, the country aims to reduce greenhouse gas emissions in line with global climate agreements. South Africa’s transition to a low-carbon economy is also expected to attract international investment, creating jobs and fostering innovation in renewable technologies.
The grant from AFD is a testament to the importance of international partnerships in achieving these objectives. With further support from institutions like the European Union and its member states, South Africa can continue to build a robust, resilient energy system that meets both environmental and economic needs.
Eskom’s Broader Clean Energy Ambitions
Beyond the Tubatse PSS, Eskom has outlined a comprehensive roadmap to increase its clean energy capacity. Over the next decade, the utility plans to execute projects in solar, wind, hydro, and nuclear energy, aiming to reduce its carbon footprint and enhance the country’s energy security. Marokane highlighted that Eskom’s clean energy portfolio would incorporate diverse resources, helping the nation achieve its climate commitments and support sustainable development.
In addition to renewable generation, Eskom is exploring other green technologies, including hydrogen production and battery storage. These initiatives form part of Eskom’s long-term strategy to transform its operations and lead South Africa toward a sustainable energy future.
Key Takeaways
• Tubatse Pumped Storage System: The R125 million grant from AFD will fund feasibility studies for the Tubatse PSS, a priority project under Infrastructure South Africa. The system will play a crucial role in managing renewable energy intermittency, with a capacity of 1.5 GW and 21 GWh of storage.
• Public-Private Partnership Model: Eskom is leveraging a PPP model for Tubatse, aiming to attract private investment and expertise. A Transaction Advisor will oversee the Private Sector Participation feasibility study, with project implementation expected between 2025 and 2033.
• Just Energy Transition: Tubatse aligns with South Africa’s JET framework, supporting a gradual shift from coal to renewable energy while fostering economic growth and job creation.
• Global Gateway and Team Europe Support: The European Union’s Global Gateway initiative represents a significant investment in South Africa’s green energy future, underscoring the importance of international collaboration in infrastructure development.
• Future Clean Energy Projects: Eskom’s clean energy roadmap includes a diverse mix of renewable projects, targeting 2 GW in the next three years and aiming to address South Africa’s energy security challenges.
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