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According to the Bank’s website, the objective of this project is to repower select Eskom coal plants with new renewable energy capacity.
Results Area 1: Renewable Energy. This Results Area will involve the installation of renewable energy generation and energy storage systems through public-private partnerships to enhance system reliability and flexibility, thereby reducing reliance on coal-based power generation. It will be implemented in the outer areas surrounding the originally targeted Camden, Grootvlei, Hendrina, Arnot, and Kriel power stations. Specifically, the repowering initiative will include the installation of up to 1,572 MW of solar and wind power, along with 850 MW of Battery Energy Storage Systems (BESS).
Results Area 2: Private Sector Mobilization. This Results Area will support Eskom (Renewable division) work on establishing PPP arrangements that aim at attracting private sector participation while ensuring Eskom’s role in South Africa’s clean energy transition.
Results Area 3: Emissions Reduction. This results area will support Eskom in optimizing its dispatch system to prioritize generation from more efficient and affordable stations, which will facilitate the reduction of coal consumption and GHG emissions from other coal stations.
Results Area 4: Workforce Transition (to be confirmed). This results area will support Eskom in designing a comprehensive Workforce Transition strategy to ensure a just and well-planned transition for workers at the five coal-fired power stations scheduled for decommissioning under Phase 3 of the MPA. Key activities will include a detailed worker profiling exercise across all five stations to inform the development of a comprehensive transition strategy outlining clear pathways for upskilling and reskilling aligned with emerging employment opportunities, redeployment within Eskom and the broader energy and infrastructure ecosystem, and voluntary separation or early retirement options for those choosing to exit the workforce.
According to the Program Information Document (PID), an Environmental and Social Systems Assessment (ESSA) will be undertaken prior to Appraisal to further evaluate the environmental and social effects of the Program and the adequacy of borrower systems.
Total Project Cost: US$ 2501.13 million
IBRD Commitment: US$ 140.00 million
Eskom Hld SOC Ltd is a South African state-owned electricity public utility. The utility is the largest producer of electricity in Africa, and it operates a number of notable power stations, including Matimba Power Station and Medupi Power Station in Lephalale, Kusile Power Station in Witbank, Kendal Power Station, and Koeberg Nuclear Power Station in the Western Cape Province, the only nuclear power plant in Africa.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| - | - | - | - | Eskom Holdings SOC Ltd | Client | - |
World Bank
Tatyana Kramskaya
Senior Energy Specialist
Borrower/Client/Recipient
Eskom Holdings SOC LTD
Implementing Agencies
Eskom Holdings SOC LTD
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