Eskom and Agence Française de Développement (AFD) have signed a R125 million grant agreement to advance the public electricity utility’s Tubatse pumped hydroelectric energy storage system in Limpopo’s Elias Motsoaledi Local Municipality.

Tubatse was approved as a priority infrastructure project during an Infrastructure South Africa bid window.

The European Union (EU) grant funding, delegated to AFD for implementation, will enable Eskom to proceed with the mega Tubatse installation. It will have power generation capacity of 1,5 GW (four 375 MW units) and storage capacity of 21 GWh. Such large-scale storage and grid services are necessary to accommodate rapid development of renewable energy in South Africa, as outlined in the Just Energy Transition Investment Plan.

The EU’s support provides another pathway for Eskom and, in turn, South Africa to move from a high- to low-carbon economy, said Dan Marokane, Eskom’s Group Chief Executive. Without large-scale facilities such as Tubatse, and the intervention provided by pumped storage systems, management of intermittent power from renewable energy (wind and PV) is difficult, he explained.

“Eskom has developed a pipeline of more than 20 GW of clean energy projects to diversify its energy mix and reduce its emissions related to fossil-fuel generation. Over the next three years, we have an ambition to execute at least 2 GW of these projects. The clean energy projects will consist of a diversified capacity mix of renewable energy – solar PV and wind, hydro, gas, nuclear and pumped storage.”

Eskom plans to develop the Tubatse project as a public-private partnership. A grant-funded transaction adviser will conduct a comprehensive private-sector participation feasibility study and business case in the first quarter of 2026. The transaction adviser will assist Eskom in selecting a private developer to implement the project between 2025 and 2033.

“The partnership between Team Europe and South Africa continues to deepen. We are rolling out our Global Gateway investment programme in crucial areas such as the green energy transition. The Global Gateway grant funding provided here will further unlock the immense potential of renewable energy and support South Africa in realising its ambitions for a greener tomorrow,” said Sandra Kramer, EU Ambassador in South Africa.