Energy

South African power grid receives nuclear boost

A wide shot of the Koeberg facility on the coast in Cape Town with Table Mountain in the background.

Eskom anticipates Koeberg’s enhanced performance will be fully realised in FY26. (Image source: Eskom)

Eskom, the South African electricity public utility, has synchronised Unit 2 of the Koeberg Nuclear Power Station in Cape Town to the national grid following a long-term operation (LTO) programme designed to extend its operational lifespan

Unit 2 contributes 930MW to the energy grid and is (alongside Unit 1) therefore considered vital to the country’s future energy security. With this in mind, Eskom undertook the LTO programme in order to ensure the safe and efficient performance of Unit 2 at the facility, helping to increase its operational lifespan by 20 years. The LTO programme included the replacement of three steam generations, inspections, and refuelling activities and follows the successful completion of a similar programme on Unit 1 in 2023.

“While projects like the LTO programme necessitate a higher initial upfront investment, the long-term benefits – including decades of affordable, low-carbon energy – make them indispensable,” said Eskom’s group chief executive, Dan Marokane. “Koeberg exemplifies how nuclear power can align economic and environmental priorities to create a sustainable energy future. Through the successful execution of the LTO project, our Koeberg team has once more demonstrated the exceptional skills we have to support our country’s nuclear ambitions.”

Units 1 and 2 of the Koeberg facility will supply 1,860MW to the grid, representing an approximate 5% of South Africa’s total electricity.

Cutting out coal

“By forming strategic collaborations with international designers, suppliers, and industry leaders, Koeberg has established itself as a hub for nuclear innovation,” remarked group executive for generation, Bheki Nxumalo. “These partnerships are anticipated to be crucial as South Africa explores advanced nuclear technologies, such as Small Modular Reactors (SMRs). This could position the country as a leader in cutting-edge nuclear solutions while continuing to build and maintain a skilled nuclear workforce.

“As South Africa phases out some of the aging coal-fired power plants by 2030, nuclear energy is poised to provide a reliable and stable baseload supply. Unlike intermittent renewable sources, nuclear power ensures continuous electricity generation, meeting the needs of both residential and industrial users. Its ability to produce carbon-free energy also supports South Africa’s climate goals by reducing greenhouse gas emissions.”

EBRD backs Africa’s largest wind farm

This project supports Egypt’s commitment to the Paris Agreement and its efforts to transition to a low-carbon energy sector. (Image source: Adobe Stock)

The European Bank for Reconstruction and Development (EBRD) is advancing renewable energy and low-carbon technologies in Egypt by facilitating a syndicated loan of US$275mn for the construction and operation of Africa’s largest wind farm

This new wind farm project is co-financed by several development institutions, including the African Development Bank (AfDB), British International Investment (BII), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

Located in the Gulf of Suez region, the wind farm will have an installed capacity of 1.1GW and will produce renewable energy at a cost lower than that of traditional generation methods. It is expected to generate over 4,300 GWh of electricity annually, reducing CO2 emissions by more than 2.2 million tonnes each year. This project supports Egypt’s commitment to the Paris Agreement and its efforts to transition to a low-carbon energy sector.

As a leading partner in Egypt’s Nexus of Water, Food & Energy (NWFE) programme, the EBRD is key to the energy component of this initiative, which was launched at COP27. This wind farm is one of the first projects developed under the NWFE energy pillar. It will contribute to Egypt’s target of 10GW of renewable energy and help decarbonise the country’s fossil fuel-based power sector.

Suez Wind, a special project company, is co-owned by ACWA Power and HAU Energy, the latter of which is a newly established renewable energy platform backed by the EBRD, alongside Hassan Allam Utilities and Meridiam Africa Investments.

Rania A. Al-Mashat, Egypt’s minister of planning, Economic Development and International Cooperation, and the EBRD Governor for Egypt, said, “Egypt is committed to advancing its renewable energy ambitions, aiming to derive 42% of its energy mix from renewable sources by 2030, in line with our nationally determined contributions. Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE programme, we are mobilising blended finance to attract private-sector investments in renewable energy. So far, funding has been secured for projects with a capacity of 4.7GW, and we are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group, added, “EBRD is proud to be the largest financier of this landmark 1,100MW wind farm in the Gulf of Suez, also the largest onshore wind farm in the EBRD countries of operation to date. Egypt continues to be a trailblazer for large-scale renewables in Africa: first with the largest solar farm and now the largest wind farm on the continent. Great to partner on both with ACWA Power and to bring new partners in this project, Hassan Allam Utilities and Meridiam.”

Scatec wins 288MW solar bid

Scatec's solar panels placed on the ground in a row

The projects will supply much-needed energy under a 20-year power purchase agreement (PPA). (Image source: Scatec)

Scatec ASA, a global leader in renewable energy, has been named the preferred bidder for a 288MW solar project in the seventh round of South Africa's Department of Mineral Resources and Energy Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

Once operational, the projects will supply much-needed energy under a 20-year power purchase agreement (PPA).

The Department of Mineral Resources and Energy anticipates commercial close for the REIPPPP Bid Window 7 in the latter half of 2025.

“This marks another significant achievement for Scatec in South Africa and for the renewable energy transition in the country. Today’s award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes,” said Scatec CEO Terje Pilskog.

Scatec will hold 50.9% of the equity in the projects, providing engineering, procurement, and construction (EPC) services, as well as operations & maintenance (O&M) and asset management (AM) services.

Landmark hydropower project for DRC

An image of a hydropower plant on a river at sunset.

The project is expected to expand electricity access to the nearby community. (Image source: Adobe Stock)

African Export-Import Bank (Afreximbank), a pan-African multilateral financial institution, has signed a project preparation facility financing agreement for its private-sector renewable energy project in the DRC

The bank, in partnership with Kipay Investments SAS, will finance the technical and bankability studies, legal financial advisory and fundraising costs for the development of a reservoir-based hydropower project in the country. Located along the Lufira River, the up to 200MW project mark the bank’s first private sector renewable energy initiative in the DRC and, when completed, will provide clean, affordable power to mining companies.

The plant will also reportedly expand electricity access to the nearby community and is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂-equivalent annually.

“Afreximbank is committed to supporting DRC’s energy transition, enhancing the country’s energy security whilst leveraging its vast renewable energy potential to develop sustainable trade-enabling energy infrastructure,” remarked Kanayo Awani, executive vice president intra African trade and export development at Afreximbank. “This financing reinforces Afreximbank’s commitment to mobilizing private capital to develop renewable energy projects and secure a sustainable future for DRC and the region. We are also proud to highlight the innovative structure deployed that encompasses a captive market that enhances the project’s bankability.”

Upon completion, the initiative is expected to lead to the creation of over 2,000 direct jobs and 952 potential indirect jobs, and augmentation of fishing and other economic activities on the reservoir. Others benefits include realisation of tax revenues to the DRC government over the 30-year duration of the project, and development of industrial clusters around the mining area.

Three BESS systems to enhance South Africa’s power infrastructure

Financial close was reached on 20 November 2024. (Image source: Adobe Stock)

Envision Energy, a leader in renewable energy solutions, has signed a contract with the EDF Group, a multinational electric utility company, in order to supply three battery energy storage systems (BESS) for the Oasis 1 cluster of projects in South Africa

Reported to be integral to the country’s inaugural Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), the projects will amount to 257MW of capacity and 1,028MWh of storage, making it the largest BESS order in the country.

The three projects include Oasis Aggeneis, Oasis Mookodi, and Oasis Nieuwehoop power plants, located in the Northern Cape Province. EDF, in collaboration with co-sponsor Mulilo and equity partners Pele Energy Group and Gibb-Crede, under the Oasis Consortium, secured the three projects that will each include a 5% ownership interest for local communities.

“Battery storage technology is a cornerstone of sustainable energy systems, and we are delighted to contribute our leading technology to this milestone project in South Africa,” Kane Xu, senior vice president and president of international product lines at Envision Energy. "Once operational, it will effectively address the frequent load management of the current South African power grid, enhance grid stability, and reduce reliance on coal-fired power plants, supporting South Africa's transition to a more sustainable energy system.”

Envision Energy will equip these facilities with a full suite of AC and DC energy storage equipment, including station SCADA and EMS systems. The DC side will feature Envision's standard 20-foot, 5 MWh storage units powered by high-safety, high-performance 315Ah cells. Additionally, Envision will provide 15 years of comprehensive lifecycle operation and maintenance (O&M) services.

Set to be operational by the end of 2026, the three facilities are expected to significantly enhance the country’s power infrastructure and are designed to alleviate grid congestion, increase renewable energy integration while also engaging in the power market. Ultimately, they will provide a useful addition to South Africa’s low-carbon energy transition and goal of achieving carbon neutrality by 2050.