Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Welcome to the 3rd edition of ourJET Change Management Fact Sheet. In this edition we focus on, Eskom’s
signed partnership agreement for the development of a new training facility at Komati, Eskom and CPUT
signing a MoA, Dutch Agri-tech contribution to Eskom’s repurposing efforts, and the Socioeconomic Impact
Assessment Study for shutting down and repurposing Eskom’s coal-fired power stations.
Eskom has signed a partnership agreement for the development of a new training facility at Komati P/S
Eskom, the South African Renewable The plans for Komati, to
Energy Technology Centre (Saretec) – accommodate more than
based at the Cape Peninsula University of 200 full-time Eskom
Technology (CPUT) – and the Global employees at the plant,
Energy Alliance for People and Planet include a manufacturing
(GEAPP) have signed a partnership plant for mobile,
agreement on 23 September 2022 for the renewable energy “micro-
Photo by Creamer Media's Darren Parker
development of a new training facility to grids” and the generation
GEAPP executive director Joseph Nganga and be established at the soon-to-be- of renewable energy,
CPUT vice-chancellor Professor Chris Nhlapo decommissioned Komati Power Station. including the launch of a
training facility where
workers will be “reskilled”
In October, the 1 000MW Komati Power Station will become the first of
for employment in the
Eskom’s old coal-fired fleet to shut down for decommissioning.
renewable energy sector.
The “Just Energy Transition” plans will be tested for the first time at Komati,
where Eskom will be launching several projects to see generation and
workforce activity continue at the power station after its imminent
shutdown date. This is the second time in Komati’s history that it will be
shut down. After coming online for the first time in 1961, the power station
was completely “mothballed” in the early 1990s because SA had too much
generation capacity at the time, said Komati GM Jurie Pieterse. However,
between 2008 and 2011 the station was brought online again.
Photo by: Julia Evans
General Manager of
Komati Power Station
Jurie Pieterse on a site
tour to show Photo by: Julia Evans
stakeholders how old Joseph Nganga, executive director for
classrooms will be used Africa of GEAPP, with general manager
for teaching when of Eskom’s Just Energy Transition Office
Komati is repurposed Mandy Rambharos, in front of a
into a renewable containerised solar micro grid on display
energy training centre. at Komati Power Station
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Eskom and CPUT signing a MoA to establish a renewable energy training centre at Komati Power Station,
The Memorandum of
Agreement (MOA) was
signed by Eskom CEO
André De Ruyter and
CPUT Vice-Chancellor
Professor Chris Nhlapo
at the SA Renewable
Energy Technology
Centre (SARETEC) on
Eskom’s Group Chief Executive André de Ruyter and Cape Peninsula University of Technology Monday.
(CPUT) Vice Chancellor Chris Nhlapo signed a Memorandum of Agreement (MoA)
The MoA will allow for
the upskilling and
• Eskom is partnering with CPUT in the reskilling of reskilling of workers
workers at Komati and surrounds dependent on and communities
the coal-value chain. dependent on the
• The reskilling project is part of a range of coal-value chain in
initiatives to repurpose the power station to Mpumalanga and
ensure a just transition. surrounds, using
• Komati's last unit is to be decommissioned in accredited courses and
Eskom Group Chief Executive André
September. programmes from
de Ruyter, Group Executive HR Elsie
• The Facility will be managed by Eskom’s Academy CPUT's SARETEC,
Pule, Just Energy Transition GM
of Learning (EAL) Mandy Rambharos, explained Nhlapo.
Eskom’s Group Chief Executive Mr André de EAL GM Beke Moloi
Ruyter stated at the signing of the MoA:
"We had two options. On the one hand we could
put a padlock on the gate and walk away and leave Kindly click on the link below to
a community that has served Eskom and South watch the SABC News clip aired on
Africa well for decades in the lurch. Or we could “Eskom and CPUT signing a multi-
make an alternative plan and make sure that we million rand deal to train workers”.
provide a new future and new horizon for the
people of Komati and the surrounding area." https://www.youtube.com/watch?v=g4URyZj-RP8
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Eskom partners with the Netherlands Embassy to repurpose and repower the Grootvlei Power Station
On 27 July 2022, the Embassy of the Kingdom of the Netherlands and
Eskom, South Africa, signed a Letter of Intent to formalise their
partnership on Just Energy Transition Projects. The projects will be
designed to repurpose and repower the Grootvlei Power Station,
which is destined to be shut down. The main aim of these projects will
be to ensure that the Just Energy Transition contributes to inclusive
economic development at the power station and in the surrounding
communities.
Niek Bosmans,
Agricultural Counsellor at
the Embassy of the Han Peters, Ambassador to South
Kingdom of the Africa for the Embassy of the Kingdom
Netherlands and Mandy of the Netherlands and Mr André de
Rambharos, General Ruyter, CEO of Eskom, after the signing
Manager of Just Energy of the Letter of Intent
Transition from Eskom
co-signing the Letter of
Intent as witnesses
Eskom’s Just Energy Transition office places equal importance on the In keeping with this drive for
"transition to lower carbon technologies", and the ability to do so in a alternative employment and
manner that is "just". Eskom is, therefore, committed to ensuring that economic development opportunities
the socioeconomic and environmental benefits of transitioning are from both parties, the Embassy of
realised, that employees and communities are involved in finding the the Kingdom of the Netherlands
solutions, and that the transition not only does not exacerbate the embarked in 2021 on grant-funded
already high unemployment rate in our country but also results in a net agriculture-related studies at the
increase in sustainable jobs. We are keen to assess all options for Grootvlei Power Station, based on the
repurposing our sites, where these options will ensure greater vast experience of the Netherlands in
community involvement, innovative revenue creation, and upliftment this regard. The Grootvlei Power
of the socioeconomic status of these areas. The Kingdom of the station was selected for its site
Netherlands is committed to combatting climate change and supports repurposing potential, strategic
the Just Energy Transition in South Africa. This transition should location (proximity to the industrial
accelerate a green and inclusive economy without leaving anyone hub, Gauteng) and accessibility (along
behind. the N3 highway).
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Eskom and the Netherlands sign agreement
Signing the letter of intent guided the
next phase of the collaboration between
Eskom and the Netherlands
Embassy. This next phase will provide
guidance for all future work, and also for
the collaboration among Eskom, the
Netherlands, and the communities to
determine tangible outcomes. In the next
phase of the collaboration, Eskom and
the Netherlands Embassy, supported by
the Netherlands Enterprise Agency,
intend to work along two tracks: a) pre-
Eskom & Embassy staff celebrating the signing of the Letter of Intent feasibility study for climate-smart,
labour-intensive agricultural/horticulture
The Netherlands Embassy had drawn on the expertise of the Territorial development at the Grootvlei Power
Development Team which is part of the Netherlands Enterprise Agency. Station; and b) an integrated and
Given their expertise with integrated territorial development sustainable approach to repurposing the
approaches in the Netherlands and abroad, this would greatly benefit Grootvlei Power Station.
Eskom. By supporting a participative, multi-stakeholder process to
develop transition pathways and create new, green employment
opportunities, the Just Energy Transition at Grootvlei can become an
inspiration, and also a blueprint for other power stations in transition.
The aim of the study was to determine the most applicable climate-
smart, labour-intensive farming and agriculture-related repurposing
opportunities for the Grootvlei Power Station, in order to create a
positive social, economic, and environmental impact on the surrounding
area, while ensuring the local communities’ involvement and
empowerment. These repurposing opportunities will be employed in Eskom JET Snr Advisor, Noella Molefe & the
addition to the renewable energy repowering options that are currently Embassy of the Kingdom of the Netherlands
being assessed for the site. Agricultural Advisor, Bernard Likalimba
These activities are complementary and fulfil the aim of Eskom’s JET Strategy to meet the two goals of
decarbonisation and socioeconomic growth. The collaboration so far has resulted in a Geographical Information
Systems study of the Grootvlei area, an assessment of the repurposing options, a preliminary situational analysis of
the property by horticultural experts, and soil and water quality analyses by specialists.
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
The Socioeconomic Impact Assessment Study for shutting down and repurposing Eskom’s coal-fired
power stations to create a basis for sustainable livelihoods
Eskom’s Just Energy Transition Strategy
The JET will focus on elements in four main areas over the next five years
to drive the goals of net zero emissions and socioeconomic growth.
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Social Impact Process
Context of the Socioeconomic Impact The socioeconomic impacts covered in the study will be
Assessment Study used for repurposing and repowering Eskom’s older power
In support of JET, Eskom is undertaking stations and relate to People, the Economy & Environment
socioeconomic impact assessment studies into • Quality of life • Employment
• • Skills
shutting down certain coal-fired power stations. Out-migration
• Living conditions • Community sustainability
This shutdown is the biggest transition that Eskom • Family ties • Economic sustainability
will undertake and will in turn affect the employees • Access to services • Business impact
• Social ills • Government revenue
and communities created as a by-product from the • Income levels • Property
operation of these stations.
Social Impact Assessment includes the processes of
analysing, monitoring, and managing the intended
and unintended social consequences, both positive
and negative, of planned interventions (policies,
programmes, plans, projects) and any social change
processes caused by these interventions. Its primary • Land uses
purpose is to bring about a more sustainable and • Quality of the environment
• Access to natural resources
equitable biophysical and human environment • Create a basis for continued, sustainable livelihoods in the
advocated by the International Association for affected regions and support a just energy transition in line
with applicable legislative framework, policies and
Impact Assessment (IAIA). programmes
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Policy context for shutting down the power stations
Generation has prepared a shutdown plan as part of the
Road Map to 2035
IRP 2019: By 2030, Eskom will decommission 10 500
Megawatts of electricity from coal , and compile a revised
plant end-of-design life plan for Komati, Hendrina and
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consectetuer adipiscing elit, sed diam
nonummy nibh Generation’s shutdown plan is part of the Road Map to 2035.
This shutdown means that “power station units are available
The socioeconomic study has the following aims: to operate but are not electrically connected to the
transmission system for capacity or economic reasons for a
• Understand the impacts of the shutdown.
period greater than twelve (12) months”. This is not
• Consult and engage with employees, affected decommissioning. Decommissioning means: “Dismantle all
communities, and stakeholders to ensure they equipment, demolish all buildings and structures, clean up
receive the necessary information and contribute the entire site, including wet and dry disposal areas, coal
to identifying possible solutions. yards – all as per standards.” Repowering means using an
alternative power source to generate electricity at the power
• Mitigate the negative economic and societal
station, e.g. solar, wind, biomass. Repurposing means using
impacts of the shutdown.
the power station for alternative purposes, such as
• Create a basis for continued, sustainable agriculture and manufacturing.
livelihoods for the affected communities, and in
local and district municipalities to support a just
energy transition. Study objectives and approach
Kindly click here to view the Eskom
Sustainability Webinar on the Socioeconomic
Impact Study For The Shutdown And
Repurposing Of Eskom Coal-fired Power
Stations held earlier this year.
When, by whom, and how should these options be
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Komati Power Station repowering and repurposing
• In 2021 there were 662 employees at Komati. The repurposing option will provide the necessary re-skilling to
create employment opportunities for the existing power station employees.
• A total of 1 083 – 1 286 construction jobs and between 285 – 445 operational jobs will be created by Solar
Photovoltaic (PV), and by Wind and Battery Energy System Storage (BESS).
• Eskom is also establishing a state-of-the-art renewables training facility at the Komati Power Station.
Direct contribution of Komati Power Station procurement effects and services
Where are goods and services procured Insights & Economic Contribution
(excluding labour)? 2019/20
The power station’s operations:
Rest of Mpumalanga PSA • Expenditure ranges around R1,6 billion
70% - annually
(mainly Emalahleni, (no goods • Over the years, Eskom has promoted
Middleburg, Ogies, Bethal, and spending in Mpumalanga through procurement
Clewer, Ermelo, Ga-Nala, services policy
Hendrina, Kabokweni, Kriel, procured • There are 1 600 coal truck deliveries per day
Thubelihle, Standerton) locally) • Coal contracts will be transferred to other
power stations
Rest of SA • Business support interventions are key
30% The power station contributes to the following:
(mainly Gauteng • Gross Domestic Product (GDP)
but also from KZN • Government taxes
and Western R1.6 bn • Employment
Cape) • Direct, indirect, and induced effects
What services are provided by the Power Station directly and to whom?
The Komati Power Station supplies water to the following:
• Owns 2 properties
• Komati village: 45 ML/month;
in Komati village;
• Lakama Guesthouse (Komati Village): 1,5 ML/month;
Komati Mitigation Plan • A total 640 houses.
• Koornfontein mine: 8 ML/month; and in addition
Repurposing initiatives at the Komati Power Station that Independent assessments of the repowering and
will create jobs and opportunities include Solar, repurposing potential at the Komati Power Station
Photovoltaic (PV), Battery Energy System Storage (BESS), Repowering Initiatives:
a containerised microgrid assembly plant, aquaponics, an • Solar (~100 MWp) + 50 MWp
• Battery Storage (150 MW = 600 MWh)
Ash geopolymer plant, and a training centre for Agrivoltaics • Gas (possible 500 MW (not cost-competitive at
renewable energy. this stage)
Containerised microgrid • Wind (50 MW), Synchronous condenser SCO
Support given to local suppliers includes Small, Medium 2. Repurposing Initiatives:
• Microgrid Assembly plant
and Micro Enterprises (SMME), and community • Agrivoltaics (500 kWp)
development projects on health, education, and food • Ash Geopolymer Manufacturing
security. Other projects to support the local community 3. SEIM Initiatives to support 1 & 2:
and rejuvenate the local economy are being conducted • Enabling, Empowering, Reskilling, and Upskilling
• Microgrid Assembly, Farming (Aquaponics, Raised beds)
by the Steve Tshwete Local Municipality, the Nkangala • Enterprise Development
District Municipality, and neighbouring mines. • Small, Medium & Micro Enterprises (SMME): Incubator and Digital Hubs
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Eskom Rising Live Event focusing on the Just Energy Transition (JET) Programme
The Eskom Rising Live Event on JET was held on 31 May 2022. The Eskom Group Chief Executive, André de Ruyter,
gave an overview of the JET programme, and Mandy Rambharos, General Manager: Just Energy Transition,
provided further details on the current and future projects that are being rolled out as part of the JET Strategy.
An interesting
video was
shared within
this session. If
you missed it,
kindly click on
the link below
to access this
video click here
Video Clip “Voices from under a dark cloud: Towards a Just
If you missed this live event, kindly click here Transition in the coalfields of South Africa”
to watch the Eskom Rising Live Event focusing
on the Just Energy Transition (JET) Programme.
Abbreviations
Abbreviation Definition Abbreviation Definition
JET Just Energy Transition CSP Concentrating Solar Power
IRP Integrated Resource Plan IAIA International Association for Impact Assessment
PV Photovoltaic COP26 Conference of the Parties – “26th COP”
NDC Nationally Determined Contributions BESS Battery Energy System Storage
RSA Republic of South Africa RVO Rijksdienst Voor Ondernemend
MW Megawatts CCGT Combined Cycle Gas Turbine
EPC Engineering, procurement, and construction FTE Fixed Term Employee
USD United States Dollar SMME Small, Medium and Micro Enterprises
UK United Kingdom KZN KwaZulu-Natal
US United States GDP Gross Domestic Product
IPP Independent Power Producers
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
Just Energy Transition (JET)
Fact Sheet #003
Re-invigorating, rejuvenating and redefining Eskom’s
destiny as we lead the energy transition into the future
Questions and Answers
Questions Answers
Eskom has the skills for coal, Eskom has renewable skills in the current clean energy power plants ̶ hydro plants and the wind farm in
or at least that is what the the Western Cape. There will be opportunities for Eskom employees to move into renewables through
facts state. Does Eskom have training/upskilling. Eskom’s Academy of Learning (EAL) is working on various partnerships to establish
the skills for JET? How will we renewable training centres, and the first centre will be opened at Komati. Existing training staff will also
train/reskill employees to be reskilled/upskilled to ensure that they can train others. Technical staff will be upskilled or reskilled to
adapt to this change? fit the new positions/opportunities.
A lot of people at the Coal 3 Operating and maintaining the existing generation fleet as well as the additional plants that JET will
sites have been told that jobs introduce, will require employees who are skilled and motivated. Eskom will prioritise sourcing people
will be lost. Management has with the skills for these positions from its existing workforce by upskilling, reskilling and/or redeploying
confirmed that no one will be staff. Where a shortfall may occur, Eskom will recruit supplementary skills from the external market,
retrenched but the rumour focusing on scarce and critical skills that cannot be found internally. Eskom is establishing Memorandum
persists. I think the details of of Understanding (MoU) with social partners to source funding for training. Eskom’s learner pipeline will
jobs being created ought to be be used to supplement the workforce. Bursaries will include opportunities for qualifications/programmes
shared as a matter of urgency. in clean technologies.
What was the outcome of the Eskom has guaranteed job security during the transition and there will be no job losses. Three levers are
study regarding job security being used:
for Eskom employees? 1. Reskilling and upskilling the employees, 2. Transfers to other stations, 3. Secondments.
A human impact assessment has been undertaken and HR plans are being developed for each power
station. Human Resources is currently preparing to engage with the Human Impact and Human Resource
Plans.
Is the JET programme aimed The Government is accountable for ensuring that the country’s energy deficit is plugged , and also for the
at plugging the energy deficit Integrated Resource Plan (IRP) 2019 and its enabling mechanisms such as the Renewable Independent
gap, thereby ending load Power Producer Programme (REIPPP) Programme. However, this is a collective effort that includes all
shedding and what are the energy stakeholders. Eskom’s sustainability is underpinned by its 2035 strategy when ~22 GW of
timelines? installed coal capacity will be shut down and repowered (pending an Eskom renewable energy allocation
issued by the Minister of the Department of Mineral Resources and Energy (DMRE) – without which
Eskom will not be able to build renewables on our decommissioned sites). Eskom will then have to
consider full decommissioning, rehabilitation of the land, and multi-decade site monitoring – which
Eskom will have to fund off its balance sheet.
Mandy Rambharos We have now released our 3rd edition of our
General Manager Change Management JET Fact Sheet. I
encourage you to read through this JET Fact
Just Energy Transition Office
Sheet as you will gather a deeper appreciation
and understanding of Eskom’s Just Energy
Transition initiatives and projects. Let’s
continue to work together to make Eskom Just
Energy Transition (JET) a success.
Just Energy Transition (JET) Change Management Fact Sheet #003: October 2022
