South Africa’s Eskom commits $73 million to hybrid renewable rollout across coal fleet

South Africa’s state-owned power utility Eskom is moving ahead with a $73 million investment aimed at blending renewable energy into its existing coal-fired power network.

The plan reflects a gradual shift in how the utility is trying to balance electricity reliability with cleaner generation. 

The programme comes as South Africa continues to face frequent power disruptions, driven by ageing coal plants, delayed maintenance, and rising demand.

Eskom is under pressure to keep the grid stable while also responding to environmental targets and funding constraints. 

Rather than building entirely new facilities, the utility is focusing on using existing power station sites as platforms for solar development.

The approach is designed to reduce costs, speed up construction timelines, and make use of established transmission infrastructure already connected to the grid. 

At the centre of the plan is a 75-megawatt solar project at the Lethabo Power Station in the Free State, one of several hybrid installations expected to be embedded within Eskom’s coal fleet over the coming years.

Lethabo solar project anchors first phase 

The Lethabo facility is part of a wider rollout of 17 priority renewable energy projects planned across Eskom’s coal-fired stations.

Construction is expected to begin in phases between now and 2028. 

Other planned sites include Arnot, Duvha, Majuba, Tutuka, Komati, Kendal, Kusile, Hendrina, Camden, and Grootvlei, all selected for their existing grid connections and infrastructure.

Capacity push and financing structure 

Eskom says the broader programme could add about 6 gigawatts of generation capacity by 2030.

Once completed, the Lethabo solar plant is expected to produce about 147 gigawatt-hours of electricity annually, enough to supply roughly 60,000 households. 

The utility also expects the projects to support local employment and skills development during construction and operations, particularly in surrounding communities.

Financing model and long-term outlook 

Bheki Nxumalo, Eskom Group Executive for Generation, said the strategy is aimed at extending the use of existing coal infrastructure while adding lower-carbon capacity in a controlled way.

He said integrating renewables into current sites helps maintain grid stability as the energy mix evolves. 

Eskom plans to fund the rollout through project finance structures using Special Purpose Vehicles, reducing pressure on its balance sheet while attracting external investors.

The utility is targeting more than 32 gigawatts of renewable and storage capacity by 2040 as it reshapes its long-term generation plan.