Kingdom of the Netherlands and Eskom work together for economic growth at Grootvlei Power Station

-Edited by Bev Mortimer- South Africa’s power utility, Eskom, and the Kingdom of the Netherlands signed letter of intent yesterday to work together on developing and implementing ‘Just initiatives’ that enable job creation, drive economic growth and improve the local environment surrounding the Grootvlei Power Station in Mpumalanga province.

Photo: Eskom

The new agreement provides an integrated and sustainable approach for repurposing the Grootvlei Power station as the site transitions from coal generation into a renewable energy hub. This marks a milestone in South Africa’s transition away from coal reliance and a key moment in Eskom’s partnership with the Kingdom of the Netherlands.


This letter of intent follows an agreement in July last year between the two parties which paved the way for the letter of intent through a pre-feasibility study for a climate-smart, labour-intensive agriculture/horticulture development at the Grootvlei Power Station .

For both Eskom and the Kingdom of the Netherlands the use of technology in agriculture to minimise the effects of climate change while creating jobs in the sector is important. The agreement aligns on the need to develop and implement a smart agriculture demonstration facility, to collaborate further on agricultural activities and to train community members at the Grootvlei Power Station.

Eskom and the Netherlands seek to develop further opportunities to create jobs by training and up-skilling people from the local communities. The letter of intent also puts forward the intention to explore the potential of creating a market in the region for profitable, productive, sustainable, and climate-smart farming.

A climate-smart horticulture demonstration site will be developed for further job creation opportunities. Relevant knowledge and skills between South Africa and the Netherlands will also be transferred and local enterprises’ business cases will be improve the creation of new enterprises will be promoted. Synergies will be explored and identified with the broader Just Energy Transition (JET) training facility at Grootvlei.

The collaboration embodies the ‘Just’ principle of Eskom’s Just Energy Transition. For the energy transition to be ‘Just’, it must consider social impacts on surrounding communities, namely, potential impacts on jobs and local economies.

Eskom says it believes that as it transitions to cleaner sources of power, it must do so in a responsible manner that considers all impacts and stakeholders, including coal mining communities that will be impacted by the transition. Eskom will continue to undertake socio-economic studies to understand the impact of the closure of the coal plants and how to mitigate its impact.

Eskom also says it seeks to re-power and repurpose other existing coal plants in line with the approach detailed in the letter of intent. This is aimed at preserving jobs and using existing grid capacity across South Africa. These projects will prioritise Mpumalanga’s oldest coal plants.

The coal plants will be re-powered by leveraging the existing infrastructure to build new generation capacity including solar, wind, batteries and/or synchronous condensers. The plants may also be repurposed into new centres of economic activity such as training centres, water treatment facilities, manufacturing plants, micro-grid assemblies and modern farms.

Considering the current capacity constraints experienced by the country, as coal-fired power stations reach end of operational life, Eskom says it will explore multiple avenues to ensure system stability and manage security of supply. This includes re-powering transitioning coal power stations with renewable energy and continuing to operate power stations beyond their shutdown dates where it is practically possible and in line with legislation.

Eskom says it aims to continue building on the strong relationship developed with the Kingdom of the Netherlands to drive impact together. Eskom values the commitment by the Kingdom of the Netherlands in helping combat climate change and support the just energy transition in South Africa.

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