Eskom has signed a grant agreement worth €6.5 million (R125 million) with Agence Française de Développement (AFD) to advance the development of the Tubatse Pumped Storage System (PSS) project, in a significant boost for South Africa’s energy future.
Two years ago, Eskom revived a proposal to build a hydropower plant that was mothballed more than a decade ago in Tubatse, and which will generate power on demand from water-driven turbines.
This project, strategically located in the Elias Motsoaledi Local Municipality in Limpopo, has been identified as a top priority infrastructure initiative under the Infrastructure South Africa Programme.
The Tubatse PSS promises to be a megastructure with a formidable power generation capacity of 1.5GW, made up of four units of 375MW each, alongside a storage capability of 21GWh.
This large-scale storage and grid service solution is crucial for accommodating South Africa’s accelerating transition towards renewable energy, as outlined in the Just Energy Transition (JET) Investment Plan.
“This support will provide Eskom and in turn South Africa with a further pathway to move from a high-carbon to a low-carbon economy,” stated Dan Marokane, Eskom Group CEO.
“Without large-scale facilities such as Tubatse, managing intermittent power from renewable sources like wind and PV would be tremendously challenging.”
As part of its strategy to diversify the energy mix and reduce dependence on fossil fuels, Eskom is aggressively pursuing a pipeline of over 20GW of clean energy projects.
Marokane emphasised the utility’s ambition to realise at least 2GW of these projects within the next three years, encompassing a varied capacity mix that includes renewable sources such as solar PV and wind, as well as hydro, gas, nuclear, and pumped storage.
To execute the Tubatse PSS project, Eskom is moving towards a Public-Private Partnership (PPP) model.
The utility plans to appoint a Transaction Advisor in the first quarter of 2026 to undertake a comprehensive Private Sector Participation (PSP) feasibility study and business case. The advisor’s costs will be supported by the grant funding and is aimed at facilitating the procurement of a private developer for the project within the 2025 to 2033 timeframe.
“The partnership between Team Europe and South Africa continues to deepen as we launch our Global Gateway investment programme in critical sectors like the green energy transition,” said Sandra Kramer, the European Union Ambassador to South Africa.
“The grant funding provided here today will further unleash the vast potential for renewable energy and support South Africa in achieving its ambitions for a greener future.”
Audrey Rojkoff, AFD’s regional director for Southern Africa and country director for South Africa, echoed these sentiments.
“AFD’s funding to Eskom reaffirms our commitment to support Eskom’s efforts to diversify its energy mix and maintain energy security,” Rojkoff said.
“This will ultimately enhance its capacity to meet South Africa’s growing energy needs while supporting economic growth.”
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