Eskom to auction off some of its land
Eskom has announced that they have initiated an auction process to unlock some land for renewable energy investors.
CEO Andre De Ruyter held a media briefing on the interim financial results for the past six months on Wednesday.
“The availability of Eskom-owned land to near-ready projects will remove a significant barrier to investment, and go a long way to resolving the well documented power crisis in the country, which is faced with an urgent and critical need for additional generation capacity,” he said.
The land will be available for lease in a competitive bidding process, which will start in Mpumalanga.
However, the bidding process is only open to private investors.
“It will be offered to the private sector for purposes of generating electricity from renewable technologies for own consumption or for sale to third parties. Mpumalanga has by far the most coal-fired plants with established transmission and distribution infrastructure.”
According to De Ruyter the leasing of land will be made subject to production being achieved by a contracted date.
“The maximum amount of electricity generation capacity per project will be capped at 100MW, and the lease will be for a minimum period of 20 years.
“The land will remain the property of Eskom for the duration of the lease,” he added.
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