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Nersa green light for Eskom to buy 344.5MW new generation capacity

An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton. Photo: Reuters

An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton. Photo: Reuters

Published May 30, 2023

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The National Energy Regulator of South Africa (Nersa) has announced its approval for Eskom’s plan to purchase 344.5MW new generation capacity from solar photovoltaic (PV) and battery energy storage.

The announcement comes after a meeting on May 25, amid a power crisis which has seen unprecedented load shedding in the country, with devastating impact on the economy.

Nersa gave the green light to Eskom to procure 75MW of new generation capacity from Solar PV at Lethabo Power Station in the Free State, and 19.5 MW of Solar PV at Sere Wind Farm in the Western Cape.

It could also go ahead with the procurement of 100MW of Solar PV as well as 150MW battery energy storage system at the Komati Power Station in Mpumalanga.

Nersa said the electricity procured should target grid connection as soon as reasonably possible.

The generation capacity must be procured by Eskom through one or more tendering procedures that were fair, equitable, transparent, competitive, and cost effective.

The Energy Regulator approved the National Free Basic Electricity (NFBE) rate of 172.76c/kWh for the 2023/24 municipal financial year, effective from July 1.

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