Eskom wins EU grant for 1.5-GW pumped storage project in S Africa

South African utility Eskom will receive EUR 6.5 million (USD 6.9m) in grant financing from French development agency AFD to back a project envisaging the construction of a 1.5-GW pumped storage hydro complex.

The grant agreement with Agence Francaise de Developpement (AFD), which was delegated by the European Union to distribute the funding, was signed on Thursday, according to an official announcement.

The utility's plan is to deliver the project under the public-private partnership (PPP) model. It will use the grant funding to hire a transaction advisor to conduct a feasibility study for procuring a private developer in the first quarter of 2026. Project implementation works are due to be carried out between 2025 and 2033.

The Tubatse pumped storage system is set to be installed in the Elias Motsoaledi Municipality in Limpopo, the northernmost province of South Africa, consisting of four 375-MW units. Once in operation, it will provide 21 GWh of storage capacity.

The Tubatse project was previously approved as a top-priority infrastructure project in South Africa. Its execution is expected to support the rapid deployment of renewable energy capacity across the country. “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,” said Dan Marokane, group CEO at Eskom.

Eskom currently has more than 20 GW of clean energy projects in its pipeline and intends to implement at least 2 GW of them over the next three years. The portfolio includes solar, wind, hydropower, natural gas, nuclear and pump storage technologies.

(EUR 1.0 = USD 1.063)

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