Exxaro Resources CEO Ben Magara and Eskom CEO Dan Marokane during the signing of a Memorandum of Understanding (MoU) on collaboration in Carbon Emissions Reduction, Air Quality and Just Transition.
Image: Supplied
Banele Ginidza
Eskom has moved swiftly to accelerate its drive to harness 2 Gigawatts (GW) of renewable energy by 2026 as it announced signing of a Memorandum of Understanding (MoU) with Exxaro Resources on Monday.
The partnership is focused on collaboration in carbon emissions reduction, air quality and just transition.
This comes on the heels of Eskom issuing a tender to establish a dedicated renewable energy business unit last week, signalling a significant shift in the utility's operational strategy.
The agreement between Eskom and Exxaro focuses on a comprehensive approach to measuring, managing, and ultimately reducing Scope 1, 2, and 3 emissions.
Both entities plan to potentially invest in innovative technologies that will facilitate decarbonisation efforts.
Furthermore, the MoU underscores the importance of inclusive and targeted transition initiatives such as skills development, job creation in green sectors, and robust stakeholder engagement essential for ensuring climate resilience.
Eskom CEO, Dan Marokane said the utility would step boldly into the renewable space because its aspirations as a business did not end with overcoming load shedding but needed the new frontier in the repurposing of its workers as well.
“There is no reason why we should be questioned as to why we should be playing in the space and not giving it to others,"Marokane said.
“We have a 42 000-person workforce that needs to be transitioned. We will do this with others on our lands, with our people who are skilled and will also leverage the balance sheet of others to de-risk ourselves going forward.
“So we've entered an era of partnership, and it’s a space that Eskom has to play in," he said, dismissing concerns about Eskom's ability to compete fairly and cost-effectively with Independent Power Producers (IPPs).”
Marokane said the utility would be bold in the confidence shown by the government and the board in clearing the way for its full participation in the renewable sector, in keeping with its global counterparts.
The MoU comes as the Minister of Forestry, Fisheries and the Environment, Dr Dion George, applauded Eskom’s recent issuance of a tender to establish a separate renewable energy business unit.
George said the tender signalled Eskom’s dedication to accelerating renewable energy deployment and supporting the nation’s Just Energy Transition (JET) objectives and commitments under the Paris Agreement.
Last month, George granted conditional emissions exemptions to Eskom’s coal-fired power stations, underscoring the urgent need for prioritisation of renewable energy integration.
However, he gave Eskom a six month deadline to submit a new cost analysis report on the Medupi Power Station Flue Gas emissions and vowed to hold the utility to account on environmental compliance while still demanding adequate electricity supply as he announced exemptions to extend the operational licences of eight coal-fired power stations to continue with operations.
George said the department had braced for all challenges, including court processes, from Eskom on the stricter enforcement of compliance with environmental legislation, but warned he never went to court on winnable matters.
"Medupi, is a heavy emitter of toxic chemicals and that a lot of people have been animated about. I decided the way I did there was some concern by Eskom and others that it is an incredibly expensive exercise apparently," George said.
"I don't know why it got to be what it is but it is like so I want another cost benefit analysis. Another one must must be done in six months. It must be done properly. I want to have a close look at it because I can actually count and I do know how finance works."
Eskom in January announced the appointment of announced Dr. Candice Hartley as chief people officer and Rivoningo Mnisi as group executive for renewables.
These appointments completed the strengthening of Eskom’s executive team to bring in new skills to guide teams within the business to execute faster and more efficiently.
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