Eskom signs deal with Netherlands to turn Grootvlei Power Station into agriculture hub

Eskom and the Kingdom of the Netherlands Embassy have signed a letter of intent to collaborate on how best to repurpose the Grootvlei Power station, which is reaching the end of its life cycle.

Eskom has already decommissioned three out of six units at Grootvlei, with the final decommission scheduled for September 2027.

“The new agreement will provide guidance for all future work between Eskom and the Kingdom of the Netherlands and the communities to determine tangible outcomes,” said the parastatal in a statement.

According to Eskom, in the next phase of the collaboration, Eskom and the Netherlands Embassy, supported by the Netherlands Enterprise Agency, will work along two tracks:

• Pre-feasibility for a climate-smart, labour-intensive agricultural/horticulture development on the Grootvlei Power Station site
• An integrated and sustainable approach for repurposing the Grootvlei Power Station site.

Eskom’s Just Transition to green energy has communities in the coal value chain concerned about the future of their livelihoods.

It wants to ensure the transition doesn’t “exacerbate the already high unemployment rate” in the country but results in a “net increase in sustainable jobs.”

Plans to revamp Grootvlei into agricultural hub

There are ambitious plans to make the Grootvlei transition process a blueprint for other sites in future.

Last year, the Netherlands Embassy embarked on grant-funded agricultural-related studies at Grootvlei Power Station.

The aim of the study is to determine the most applicable climate-smart, labour-intensive farming and agricultural-related repurposing opportunities for the Grootvlei Power Station site.

“These repurposing opportunities will be employed in addition to the renewable energy repowering options that are currently being assessed for the site,” said Eskom.

“These activities are complementary and fulfil the aim of Eskom’s JET strategy to meet both decarbonisation and socio-economic goals.”

The Netherlands Enterprise Agency reportedly has, according to the power utility, ‘extensive experience in integrated territorial development approaches’ in back home and working with other countries transitioning to green energy.

“We are keen to assess all options for repurposing our sites that will ensure greater community involvement, innovative revenue creation and upliftment of the socio-economic standing of these areas,” said Eskom.

The collaboration has since resulted in a Geographical Information Systems study of the Grootvlei area, a repurposing options assessment, a preliminary situational analysis of the property by horticulture experts, and soil and water quality analyses by specialists.

The Grootvlei Power station was selected due to the site’s repurposing potential, strategic location (proximity to the industrial hub, Gauteng) and accessibility (along the N3 highway).

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