Is it working?

Eskom has conducted the process relatively efficiently so far however, not all preferred bidders met obligations to move ahead with projects.
According to CEO Dan Marokane only two developers will build new IPPs.
Eskom has had to adjust the programme and intends to build its own renewable energy plants on the land.

Actions

Eskom is collaborating closely with IPPs and the government to remove critical roadblocks like environmental approvals, land rezoning and grid connection applications, to get power on to the grid as quickly as possible. While a potential further 30,000 hectares remains available, Eskom still needs to clarify how much of this it will put out to future RFPs. So far only two of the successful bidders have met obligations to proceed with projects.
Eskom has also made alternative plans to develop its own renewable energy projects on the land.

Are there plans?

More than 6,000ha were contracted to IPPs, but these have made slow progress. Potential bidders are developing feasibility studies to identify which technologies - wind, solar and battery storage - they will implement at each site. The exact generation capacity will only be known after the studies are done.
It is not clear that Eskom will continue leasing land to more IPPs and issue subsequent RFPs.
The utility however has launched an alternative renewable energy off-take programme. It intends to build 291MW of new solar plants on land adjacent to coal power stations and sell the power to the highest bidders, that would enter into Power Purchase Agreements ranging between five to 25 years.

Is it on the agenda?

The plan was placed on the agenda in 2022 by Eskom in response to the president's call for new ideas to support electricity capacity.
Given limited success, Eskom has launched a different renewable energy offtake programme that would make use of the remaining land (30,000 hectares).

Goals

The goal was for Eskom to lease a total of 36,000 hectares in Mpumalanga to private sector companies that wish to develop their own renewable power generation plants using renewable technologies. These are positioned close to grid infrastructure, allowing for relatively cheap grid access where there is capacity. While the 36,000 number was initially tabled in 2021 by then minister Pravin Gordhan, it is unclear that this is a feasible goal for potentially viable sites. No new target has been provided, and Eskom has launched a new programme where it will build its own renewable energy plants on the sites.

References

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Departments / Govt Institutions

Eskom Holdings