1. Eskom’s Just Energy Transition Strategy
Mandy Rambharos
September 2021

2. • Aligning with National Policy
• Long term vision and short-term goals - Eskom’s JET Strategy
• Challenges and the road ahead
CONTENT

3. Failing to do so would be disastrous for South
Africa:
• South Africa warms at twice the global rate. The
latest IPCC findings show 1.5 degrees Celsius of
warming globally is likely, which means 3 degrees
Celsius for South Africa.
• Sub-Saharan Africa can expect more frequent
heat waves, heavy rainfall, fires and droughts
which will affect livelihoods, tourism, agriculture,
water systems and ecosystems.
• Only with ambitious emissions cuts can the world
keep global temperature rise to 1.5 degrees,
which is necessary to prevent the worst climate
impacts.
3
With so much to lose, South Africa continues to encourage greater ambition at a global level and
seek optimal ways to contribute its fair share towards decarbonisation..
SOUTH AFRICA WARMS AT
TWICE THE GLOBAL RATE
The science is clear: globally, economies need to reduce emissions to net-zero by 2050 and
implement roughly 50% reductions by 2030 to avoid the worst effects of climate change
National strategy context

4. IEA,2017
estimates ~225
MtCO2e
~7 MtCO2e is
mining2
41% 11% 9% 7% 8% 11% 10% 4%
Electricity production accounts for approximately 41% of total carbon emissions
in South Africa and will deliver significant impact if decarbonisation is pursued
Overview of emissions in South Africa (MtCO2e)
. 1. Emission figures based on view of Electricity & Heat Production of which electricity production contributes >97% of emission 2. GHGI does not explicitly state estimate for mining emissions so this
has been estimated. Assumed scope 1 emissions share of top 12 companies is same as their market share (80%) and use this to gross up to 100% . 3. Includes fossil fuel combustion for both agriculture
and forestry 4. Gross total excludes categories 1A5 as it is not linked to any sectors and 1B1 to avoid the double counting of fugitive emissions from coal mining which are included In the mining sector
emissions approximation
Source: GHGI (2017) IEA (2015), WEO (2019), CDP (2015), GHGI (2015), CAT, NBI-BCG Project Team
225
553
63
49
42
59
55
21
Electric.
production1
Petrochem. Commercial
& residential
Manufct.
& constrn.
Transport
Mineral &
metal prod.
Agriculture
& forestry3
Waste Gross
Total4
AFOLU sinks Net
Total
38
-43
510
XX % of Gross total
350
420
Eskom can
significantly
reduce
emissions
and become
the first
phase of our
transition as
a country.
National strategy context

5. Net zero emissions by 2050 with an increase in sustainable jobs
underpinned by strategic objectives
5
Net zero carbon emissions by 2050
• JET Vision: Net zero
carbon emissions by
2050 with an increase in
sustainable jobs
• Net zero implies still
having residual
emissions over the next
30 years, however
technological changes
such as hydrogen could
change this rapidly
• Mitigation and adaptation
related activities
Accelerate execution of
Renewable energy
through partnership
funding models
Ensure positive social
impact through local
manufacture and job
creation
Collaborate with
government, business,
academic and civil
society to drive a JET
agenda for the country
Accelerate repurposing
and repowering of
power stations through
partnership models
Leverage national
and global climate
and green finance
opportunities
ESKOM’S JUST ENERGY TRANSITION (JET) VISION
Drive research and
innovation into
technological solutions
including storage options,
reaching absolute zero
and increasing adaptive
capacity
JET PROJECT CRITERIA
• Reduce Eskom’s GHGs
• Reduce local air pollution
• Positive impact on the
environment
• Contribute to localisation,
reindustrialization and
community development,
promoting skill,
development and job
creation
• Attract green and climate
financing, funding and
carbon market
• Contribute to operational
&financial sustainability
and its license to operate
• Promote innovation and
research
• Replicable, measurable
and scalable

6. The JET will focus on elements in four main areas over the next 5 years to drive the
net zero emissions and social impact goals
6
Just: Doing better for people and the planet,
Growing localisation and industrialisation
Energy: Cleaner, sustainable electricity
provision
Transition: Transformational change of
business models, attracting green financing
Enablers: Collaboration across constituencies
ESKOM JUST ENERGY TRANSITION STRATEGY

7. Various scenarios were modelled to assess the viability of the JET pathways from
an energy planning perspective
7
• The Baseline
Scenario follows
IRP2019 as the
approved plan for
the future power
system
• This describes how
the system will most
likely meet the
demand and the
associated emissions
that will be produced
• The Optimised
Scenario shows the
Least Cost
Pathway to meet
the demand and
describes the plan’s
associated
emissions
• This scenario is not
constrained by the
IRP plan as it is not
necessarily a least
cost plan
• The mitigation
Scenario employs
carbon budgets to
the system to achieve
accelerated CO2
emissions reduction
above and beyond
the IRP
• This scenario
describes the offering
of the transaction
Baseline
Scenario
1.
Optimised
Scenario
2.
Mitigation
Scenario
3.
ESKOM JUST ENERGY TRANSITION STRATEGY – DECARBONISATION DATA MODELLING
Comparison of CO2 Emissions Trajectories
for all Scenarios (Mt)
-
50
100
150
200
250
300
Emissions
[Mton]
PPD 44.5% PPD
Unconstrained Pathway 2030 (5.08 GTon) 1 Gt Mitigation (3.83 GTon)
Least Cost (3.74 GTon) Constrained Pathway 2040 (5.06 GTon)
1.5 Gt Mitigation (3.37 GTon) Constrained Pathway 2030 (5.08 GTon)

8. Analysis of additional capacity and shut down of coal plant 2022-2035 (GW)
Preliminary modelling shows a significant amount of new clean generation is
required to replace coal plant to be shut down
Source: Eskom CDS: 20210712_Capacity outlook analytics CDS Shutdown plan
2032
2029
6,0
2022 2033
2023
1,2
2028
2,0
2026
2024 2025 2027
0,3
2030 2031 2034 2035
2,0
5,5 5,5
1,9 2,2
4,5
3,7
0,9
9,7
4,6
Risk mitigation project
PV Wind Gas Battery
2,4
2025
2022
1,0
2023 2024 2026 2027 2030
2028 2029 2031
1,5
0,4
2032 2033 2034
2,4
2035
1,4
0,6
1,3
2,0 2,1
1,6
1,8 1,8 1,8
0,6
Tutuka Grootvlei
Kriel
Matla Komati Hendrina Camden
Duvha Arnot
New clean
Generation
50 GW
Eskom
Coal
capacity to
be shut
down
21,8 GW
(Nameplate
capacity)
• In line with the
Integrated Resource
Plan (IRP 2019),
which runs to 2030,
22 GW to be
shutdown between
2022-2035.
• Total new capacity
is 50 GW - 53%
wind, 26% Solar,
11% battery storage,
6% Gas and 4%
RMIPPPP with
mixed technologies
• New cleaner
capacity is required
to be added to the
grid at a rapid scale
important to meet
system adequacy
requirements
ESKOM JUST ENERGY TRANSITION STRATEGY – DECARBONISATION DATA MODELLING

9. Generation
• Deliver at least 8000 km of transmission grid (R120bn)
expansion to connect new capacity in line with IRP and
accelerated shutdown
• Construct 12 substations across four provinces (Northern Cape,
Western Cape, Eastern Cape and Free State)
• Install 110 transformers to deliver network strengthening
requirements up to 2030
Transmission
Distribution
• Strengthening of critical corridors on the Distribution grid to
enable connections of IPP’s, Distributed Energy Resources
(DER) (R30bn)
• Rollout of micro grid solutions to electrify 13% of the
population (R15bn) to deliver against government's
electrification programme
• Enable bidirectional energy management and flexibility,
facilitate an inverted energy economy
9
Grid strengthening, in the Northern and Eastern Cape provinces, is a key enabler for the roll-out of new renewable capacity in these areas. Repurposing and
repowering will allow for optimisation of grid capacity in Mpumalanga.
Shovel-ready projects
We have a number of projects in the pipeline
Prioritised capacity opportunities and associated funding required
Project MW Timing
Komati PV 100,00 12-18 months
Komati Gas 1 000,00 24-48 months
Sere PV 600,00 18-48 months
Kleinzee 300,00 12-24 months
Aberdeen 200,00 24-26 months
Majuba PV 65,00 12-24 months
Tutuka PV 65,90 12-18 months
Arnot PV 17,00 12-18 months
Duvha PV 23,50 12-18 months
Lethabo PV 75,00 12-18 months
Olyvenhouts drift PV 550,00 12-18 months
Other wind 100,00 TBD
Microgrid 1 400,00 6-12 months
RBay gas 3 000,00 24-60 months
Komati Battery storage 244 MWh 12-18 months
Total funding required
ESKOM JUST ENERGY TRANSITION STRATEGY – DECARBONISATION PROJECT PIPELINE

10. Opportunities for SMMEs; Black industrialists; women owned opportunities
Localisation of supply chains
Contribution to reindustrialization and
stimulation of South African manufacturing
sector through localisation of the supply chains
Contribute to localisation and development
of black/women industrialist and community
based ownership Enterprise and Supplier Development:
focused development and incubation of
new players in renewables, clean energy,
gas and wires value chains through the
Eskom Foundation
Richards Bay and Coega Gas-to-Power
projects: catalysing gas based
industrialisation through virtual gas
pipelines through manufacturing of gas
cylinders (Coega IDZ) and related
primary transporter services
Monetizing Eskom R&D: partnerships
for containerized micro-grids at scale
ADDITIONAL JOB OPPORTUNITIES ALONG THE VALUE CHAIN

11. Economy
Environment
People
Socio-economic impact studies: What impacts did we
investigate?
11
• Quality of life
• Out-migration
• Living
conditions
• Family ties
• Access to
services
• Social ills
• Income
levels
• Land uses
• Quality of the environment
• Access to natural resources
• Employment
• Skills
• Community
sustainability
• Economic
sustainability
• Business
impact
• Government
revenue
• Property
ESKOM JUST ENERGY TRANSITION STRATEGY – “JUST” ELEMENTS

12. Komati Power Station will serve as the flagship site to demonstrate our transition
ambitions
12
Komati Power Station has served South
Africa since 1961
With Komati’s last coal-fired unit set to be shut down
in 2022, the Komati repowering and repurposing
programme offers many opportunities
• Offers the unique opportunity to pilot the repowering of
a station on existing Eskom land.
• In the next 3 months will install Agrivoltaics and a
Microgrid assembly plant.
• We are completing the engineering studies to confirm
the capacities of PV and Battery that we will install in
the next 12-28 months
Agrivoltaics
Containerised microgrid
ESKOM JUST ENERGY TRANSITION STRATEGY – “JUST” ELEMENTS

13. What are key challenges and lessons learnt in developing implementation
strategies and domestic roadmaps to support net-zero targets?
Key insights
• Change management
is a crucial parallel
workstream, as buy-in
is required for success
• Do not tire of repetition
and discussion
• Holistic approach –
addressing all aspects
and concerns with
equal attention
• Data, Data, Data
“Culture eats strategy for breakfast” Peter Drucker
Challenges
• Drawing the links between the JET and the country’s myriad of
challenges, and being able to prioritise and focus on what needs
to be done now
• Inability to connect the long term strategy with short term goals
• Concerns over job losses, and knock impacts given Eskom’s reach
• Financing innovations
• Mind-sets: doing things very differently from before
Lessons Learnt
• Do not underestimate the importance of history, nor the ability of
people to adapt. (e.g. coal mining community concerns and
optimism)
• Technology choice is not the most difficult part of the equation –
dealing with the social impacts is.
• Work with “non-traditional” allies