Eskom breaks ground on R1.2bn solar plant at Lethabo power station

Eskom Green has officially broken ground on a R1.2 billion, 75MW solar power plant at the Lethabo Power Station in the Free State.

The project marks the state utility’s first step towards integrating utility-scale renewable generation directly within its existing coal-fired power station infrastructure.

Once fully operational, the solar facility is expected to generate approximately 147GWh of green electricity annually, providing power to an estimated 60 000 South African households.

Beyond adding clean electrons to the grid, the initiative is said to stimulate local economic opportunities and drive vital skills development during both its construction and operational phases.

The commencement of construction was marked by a high-level delegation, including the Minister of Electricity and Energy Kgosientsho Ramokgopa, the Premiers of both the Free State and Gauteng provinces, and Eskom’s executive leadership team.

Leveraging the coal footprint for grid stability

The positioning of the solar plant directly within Lethabo’s footprint allows Eskom to deploy new generation capacity at an accelerated pace by bypassing standard grid-connection delays.

By utilising established transmission infrastructure, existing grid connections and deep internal operational expertise, the utility can scale up lower-carbon capacity without compromising system reliability.

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Eskom group executive for generation Bheki Nxumalo said this integrated approach forms a blueprint for protecting the national grid while evolving the energy mix.

“Our coal-fired operations remain central to grid stability, and we are strengthening that foundation by integrating renewable capacity on the same footprint.

“By leveraging established transmission infrastructure, grid connections and deep operational expertise, we can deploy new generation at pace and at scale, without compromising system reliability.”

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Eskom CEO Dan Marokane noted that this structural evolution comes at a critical operational turning point for the utility, following a full year of uninterrupted supply.

“Now that we have delivered a stable electricity platform for the South African economy to grow from, we can seamlessly enable the integration of renewable energy sources as required by the 2025 Integrated Resource Plan (IRP) to maintain future energy security.”

The 6GW footprint expansion

The 75MW Lethabo installation is not an isolated development. It represents the first of 17 high-priority renewable energy and storage projects earmarked for implementation across Eskom’s existing coal-fired station footprint.

Construction across this wider portfolio is scheduled to begin between now and 2028, with the projects collectively expected to deliver 6GW of new capacity by 2030.

These developments will be deployed across key asset sites, including Arnot, Duvha, Majuba, Tutuka, Lethabo, Komati, Kendal, Kusile, Hendrina, Camden, and Grootvlei.

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Furthermore, the Lethabo facility forms part of a near-term, construction-ready pipeline of at least 2GW of renewable energy and pumped storage projects advancing through 2026.

Funding for this immediate 2GW tier has been provisioned within Eskom’s approved capital expenditure programme.

The group noted it will be financed entirely through on-balance sheet funding, in strict adherence to National Treasury debt relief conditions, without relying on additional project finance borrowing.

Eskom Green’s multi-decade horizon

Looking beyond its own real estate and existing decommissioning sites, the utility’s newly framed division, Eskom Green, is preparing to adopt a proactive external expansion strategy.

To diversify revenue bases and align with shifting customer load profiles, Eskom Green plans to actively pursue public-private partnerships, co-development opportunities and corporate acquisitions of advanced-stage projects situated in high-resource wind and solar areas.

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This long-term commercial framework will make use of dedicated project special purpose vehicles (SPVs) and project finance principles to limit direct recourse to Eskom’s central balance sheet.

Rivoningo Mnisi, group executive for Eskom Renewables, added that this systemic pivot is crucial for the utility’s long-term commercial viability.

“The Lethabo solar power plant represents a significant milestone in Eskom Green’s renewable energy pipeline and forms part of the utility’s broader strategy to diversify the generation mix, support South Africa’s Just Energy Transition objectives and provide customers with lower carbon electricity.”