Eskom has announced that the secured concessional funding of $497 million for the repowering and repurposing of the Komati coal power station in Mpumalanga is expected to take effect at the end of July.

The final unit of the Komati power station, which began commercial operation in 1961, was shut down on October 31 last year. Since then, the site has become the flagship location for Eskom's Just Energy Transition (JET) strategy.

In February, a funding agreement was signed for the repowering and repurposing of Komati, which includes a combination of finance, including a $439.5 million loan from the World Bank, a $47.5 million loan from the Canada Clean Energy and Forest Climate Facility, and a $10 million grant from the Energy Sector Management Assistance Program.

During a Presidential Climate Commission stakeholder meeting on July 7, Public Enterprises Minister Pravin Gordhan highlighted the significance of Komati in implementing the JET strategy. He also mentioned that the lessons learned from Komati would be valuable for the retirement of other power stations, such as Camden, Hendrina, and Grootvlei. However, he indicated that the retirement dates for these stations might have to be delayed due to South Africa's ongoing loadshedding crisis.

The funding secured for Komati will be utilized for several projects, including the implementation of a 100 MW solar photovoltaic project, a 150 MW battery energy storage deployment, and a 70 MW wind project for repowering the site. Additionally, the funds will support various repurposing initiatives, such as agrivoltaics and aquaponics schemes, the development of a microgrid assembly line, and various training programs in partnership with the South African Renewable Energy Technology Centre.

Eskom has received the necessary approvals for the development of the solar and battery projects, and site-specific wind resource testing is currently underway. The utility plans to appoint an owner's engineer in August and expects to approach the market for the construction of the solar and battery projects in the second quarter of 2024. The appointment of engineering, procurement, and construction contractors is anticipated later in the year, with construction to be completed by 2026.

Furthermore, Eskom is planning to construct three synchronous condensers on the site to provide grid stabilisation services and assist with voltage control. A contractor for this project is scheduled to be appointed later this year, and implementation is planned for 2025 and 2026.

By 2030, Eskom envisions the Komati site having a renewable generation capacity of 370 MW and a pipeline of additional repowering and repurposing opportunities. The project is expected to create 660 net direct full-time jobs and 8,700 temporary jobs in and around Komati by that same date. Additionally, the facility aims to provide training for 200 individuals annually and produce containerised microgrids for use in remote areas of South Africa and Africa as a whole.

Eskom emphasized the importance of initiating JET projects well in advance of coal decommissioning to minimize disruption to local economies and communities.