Eskom mulls private, foreign options on R390-billion grid build

South Africa’s State-owned power utility Eskom said it’s in talks with government ministries over private and foreign options to fund a R390-billion expansion of its transmission network as more renewable generation comes online. Eskom supplies more than 80% of electricity to the continent’s most industrialised nation and has failed to meet demand, resulting in blackouts that have crippled the economy. The utility also owns, manages and maintains the transmission system and plans to build 14 218 kilometers of power lines over the next decade, more than three times what it has installed over the past 10 years. The company is holding “ongoing discussions with key government ministries on the funding of the South Africa’s transmission capital-expenditure requirements” that include the potential use of money pledged by rich nations toward an energy transition and another option to tap private sources, the utility said in an emailed response to questions. Foreign nations have pledged more than $9-billion in climate financing to South Africa through the so-called Just Energy Transition Partnership in 2021. France, Germany, the US, UK and European Union offered the money to help South Africa move away from coal, which is currently the source of more than 80% of the nation’s power.