Eskom has launched its new renewable energy business, Eskom Green, which will develop utility-scale renewable energy projects – 17 high-priority projects have been identified across its coal-fired power station footprint to deliver about 6 GW of additional capacity by 2030.
The business will supply large industrial customers through bilateral power purchase agreements using Eskom Green’s own renewable generation, supported by storage and firming arrangements where “around-the-clock supply” is required, the utility said.
The business is currently part of Eskom Holdings and is expected to be separated into a wholly owned subsidiary with an independent Board subject to governance, regulatory and shareholder approvals.
“This new entity is built on decades of power generation skills and expertise the nation has invested in. Eskom Green reflects successful adaptation to new technologies within Eskom. We have been playing in this space for some time and we are now putting a stake in the ground,” said Eskom Group Chief Executive Dan Marokane.
How it will work
The first phase will target large industrial demand in mining and manufacturing through Section 34 Integrated Resource Plan allocations and direct bilateral power purchase agreements.
The pricing model will separate energy costs from network-related charges. Wholesale tariffs, network charges, wheeling costs and other regulated charges levied by transmission and distribution operators will be passed through at cost and shown as separate line items rather than absorbed or marked up by Eskom Green.
“Under a take-or-pay structure, the customer commits to a fixed volume and pays the agreed price whether or not the energy is consumed, giving Eskom Green the firm revenue base that anchors special purpose vehicles (SPVs) that will finance the projects,” Eskom said.
As the Eskom Green portfolio scales, “aggregation, ancillary services and wholesale market participation will be added to the service offering,” the utility said.
The technology pipeline is weighted towards solar photovoltaics (PV), supported by battery energy storage systems, pumped storage and wind, “to provide the asset base from which the 2 GW operational target can be delivered”, Eskom said.
6 GW by 2030
The 17 high-priority projects include at least 2 GW of renewable energy and pumped storage projects expected to advance from 2026, including the 75 MW Lethabo solar PV project in the Free State.
The co-location of renewable and conventional generation will be extended to additional sites with the next project planned for Komati Power Station. Eskom said this approach is expected to support faster deployment, improve cost efficiencies and strengthen grid resilience.
Funding for the initial phases has been allocated in Eskom’s approved capital expenditure programme and is expected to use on-balance-sheet funding in line with National Treasury debt relief conditions and without additional project-finance borrowing, the utility said.
The project pipeline will be implemented in phases to support system reliability while enabling a managed transition and local economic participation. Eskom said the developments are being coordinated through Eskom Green to strengthen delivery of new generation capacity while maintaining alignment with regulatory frameworks and system requirements.
Public-private partnerships
Later phases are expected to include public-private partnerships, co-development structures and hybrid projects combining solar PV and battery energy storage.
Eskom said a further pipeline of up to 32 GW of renewable energy and storage projects could be advanced by 2040 through dedicated project SPVs. The utility said the use of project finance principles intends to support utility-scale renewable projects through public-private partnerships, limit recourse to the Eskom balance sheet and use Eskom’s existing footprint and system knowledge.
A second phase of the customer offering will target the Eskom Distribution market through the eDX Edge offering as well as the South African Wholesale Electricity Market, the Southern African Power Pool and municipalities.
Eskom said it is engaging with the relevant authorities on governance, funding and regulatory approvals for Eskom Green’s long-term implementation.
