Eskom has secured a €10-million (R180-million) grant from German development bank KfW to set up a renewable energy training facility at Grootvlei coal power station in Mpumalanga.

Eskom CEO André de Ruyter mentioned the deal on Thursday, at COP27, in Sharm El-Sheikh, Egypt. He was presenting on the steps taken to repurpose its coal-fired power stations, specifically Komati, which has become a flagship of a just transition.

Komati, which has been operational since the 1960s, decommissioned its last unit in October.

The power utility is in the process of setting up a renewable energy training facility at Komati through an alliance with the Cape Peninsula University of Technology's South African Renewable Energy Technology Centre. The power utility is leveraging CPUT's curricula and accredited qualifications to train solar PV and wind technicians.

Eskom recently secured a multimillion-rand grant from the Global Energy Alliance for People and Planet (GEAPP) for the training facility. Among those affiliated with GEAPP include philanthropies like the Rockefeller Foundation, the Bezos Earth Fund and IKEA Foundation.

Grootvlei, which is also based in Mpumalanga, will have a similar facility set up, De Ruyter said.

"I am also very happy to announce we will replicate this training centre at our Grootvlei power station, where we have secured funding to the tune of €10-million from KfW, the German development bank," said De Ruyter.

A spokesperson from KfW confirmed to News24 that the deal followed negotiations between the South African and German governments in October 2022.

The funding falls under the German Financial Cooperation for a new programme: Skills for a green and just energy transition.

De Ruyter said that there were about 200 000 trained people in Mpumalanga working in the coal value chain, who should be upskilled and reskilled to take part in renewable energy sectors. As it stands, there are about 16 000 vacancies in the wind and solar industries because people have not been trained for these jobs, he explained. For this reason, training and reskilling people is a big part of ensuring a just transition in the energy sector.

De Ruyter noted that the concerns of labour about job losses are "legitimate". He acknowledged there would be job losses in the coal sector. But studies show that 300 000 net jobs would be created in the new industries.

Komati power station, meanwhile, has secured about R9 billion (in concessional loans and grants) from the World Bank and partners for its repurposing which would include 150MW of solar PV, 70MW of wind and 150MW battery storage capacity. Eskom will also build 500kW agrivoltaic PV plants and an assembly line for micro-grids.

It is estimated the repurposing will create 430 direct full-time jobs and 7 700 temporary jobs.

Eskom chairperson Mpho Makwana said that similar repurposing strategies would be rolled out at the stations Camden, Hendrina and Grootvlei.