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Eskom is looking into establishing agricultural hubs at its soon-to-be-retired coal power stations Camden, Grootvlei, Hendrina, Kriel and Arnot.The power utility is seeking to avoid the mistakes that occurred when it decommissioned Komati in 2022 — a process the Presidential Climate Commission found fell short of the inclusive and participatory engagement required for procedural justice.To this end, Eskom has kick-started a process to repurpose the five power stations into new centres of economic activity ahead of their planned 2030 decommissioning.The company last week issued a request for information (RFI), inviting private sector parties to help it understand the costs and circumstances under what market players would be willing to establish the proposed agricultural hubs.“The shutdown of a power station has serious negative financial and economic impact on communities living close by if not managed appropriately and, at the same time, presents opportunities to reduce our carbon footprint, create jobs and support economic growth and development,” the RFI reads.“Agriculture has been identified, through socio-economic impact assessment studies, as a key Just Energy Transition (JET) initiative to achieve the JET objectives, given that the agricultural sector is a vital stimulator and key economic pillar for growth, job creation and rural development in the Mpumalanga region.”The RFI acknowledges that South Africa is facing the energy trilemma (energy security, sustainability and affordability) as it moves to decarbonise the economy, stating the JET seeks to balance this by providing a second life to power stations for continued economic stability.South Africa has secured nearly $14bn in international climate finance commitments since the launch of its Just Energy Transition Partnership (JETP) in 2021. However, the US, under Donald Trump’s administration, withdrew $1bn in pledged support last year, reducing total commitments to $12.8bn.Eskom and the government have pledged to avoid making the same mistakes that transpired in the closure of Komati, which became a flawed pilot for South Africa’s transition, marred by poor planning and severe economic distress for locals.A report by the Presidential Climate Commission said the government must draw lessons from the botched Komati closure.“The planning process for decommissioning and repurposing must commence as soon as the timeline is known to support a seamless transition with immediate jobs and training as coal plants close and with early and frequent engagement with impacted groups,” the report recommended. “Transparency and participatory planning processes can support community agency and build trust that all actors are committed to the just transition, with communities reaping the benefits.“The local government must stimulate local economic development and diversification, the province must drive the deployment of renewable energy projects, and the national government must channel sufficient funds and policy support.”Eskom’s JET strategy aims to repower coal plants by leveraging existing infrastructure to build new generation capacity, including solar, wind, gas and synchronous condenser technologies, and repurpose coal plants into new centres of economic activity, including training centres, water treatment plant facilities, manufacturing plants and microgrid assembly.“In anticipation of the eventual shutdown of the power stations, the approved Eskom JET strategy calls for decoupling of the repurposing and repowering initiatives from the shutdown schedule.“This decoupling allows for the commencement of JET initiatives while the station is operational. The intention is to diversify economic activities around the various power stations earmarked for closure by 2030 and create high-quality jobs for affected community members.”Eskom’s board in 2024 delayed the decommissioning of its ageing Camden, Arnot and Grootvlei coal-fired power stations to 2030 to protect South Africa’s grid stability.Business Day reported earlier this year that Eskom’s Camden power station in Ermelo has been identified as the preferred site for the solar PV panel facility, which will produce at least 1 gigawatt — enough to supply the electricity needs of at least 750,000 homes.Business Day
