Eskom and AFD Secure R125 M Grant to Advance Tubatse Pumped Hydro Storage Project

Eskom’s Group Chief Executive (GCE), Dan Marokane, stated that the Tubatse PSS is crucial for integrating renewable sources like wind and solar photovoltaic (PV) into the national grid.

In a strategic move to bolster South Africa's clean energy transition, Eskom and the Agence Française de Développement (AFD) signed a R125 million grant agreement to support the development of Eskom's Tubatse Pumped Storage System (PSS) in the Limpopo Province’s Elias Motsoaledi Local Municipality. The initiative aligns with South Africa's Infrastructure Programme priorities, aiming to enhance the country's renewable energy storage capacity.

Eskom’s Group Chief Executive (GCE), Dan Marokane, stated that the Tubatse PSS is crucial for integrating renewable sources like wind and solar photovoltaic (PV) into the national grid. "Projects like Tubatse enable better management of renewable energy’s intermittency, essential for a low-carbon economy," said Marokane. He highlighted Eskom's pipeline of over 20 GW of clean energy projects, targeting 2 GW in development over the next three years. These projects will feature a diverse mix of renewable sources, including solar PV, wind, hydro, gas, nuclear, and pumped storage.

The Tubatse Pumped Storage System, a 1.5 GW facility with 21 GWh of storage capacity, is positioned as a "mega installation" that will support the Just Energy Transition (JET) Investment Plan. By storing energy and providing grid stability, the project will accommodate the country’s rapid renewable energy expansion. Eskom intends to develop Tubatse as a Public-Private Partnership (PPP) and will hire a Transaction Advisor in early 2026 to conduct feasibility studies on private sector involvement. Project implementation is scheduled for 2025–2033.

The grant will fund this advisory process and feasibility study, underscoring AFD's commitment to Eskom’s mission of energy diversification. Audrey Rojkoff, AFD’s Regional Director for Southern Africa, stated, "AFD’s funding reaffirms our support for Eskom's efforts in achieving energy security and sustainable growth in South Africa."

Sandra Kramer, EU Ambassador to South Africa, hailed the agreement as a pivotal contribution to Team Europe’s Global Gateway programme, which fosters green energy transition partnerships with countries globally. Kramer noted that the funding would “unlock South Africa’s potential for renewable energy” and aid the country in realizing its sustainability objectives.