Eskom has confirmed that National Treasury has granted Section 51G approval for the establishment of Eskom Green, a new ring-fenced subsidiary that will focus on renewable energy investments as South Africa advances electricity market reforms.
This was announced by Eskom General Manager of Business Development: Renewables, Khutso Sekgota during an industry webinar hosted by EE Business Intelligence on May 12.
According to Sekgota, the Section 51G approval enables Eskom to formally establish Eskom Green as a standalone subsidiary under the governance requirements of the Public Finance Management Act. The approval also supports the ring-fencing of renewable energy investments and projects at Eskom’s broader utility operations.
Sekgota said Eskom Green will focus on solar photovoltaics, wind, hydro, pumped storage and battery energy storage systems. The subsidiary will also explore opportunities presented by green hydrogen.
According to Sekgota, Eskom Green already has about 14 GW of projects under development. This includes projects linked to the repowering and repurposing of coal-fired power stations approaching end of life.
The subsidiary will be ring-fenced to address concerns about cross-subsidisation and to support participation in a more competitive electricity market environment, he stressed.
Eskom Green is expected to participate in the market under the same rules as private independent power producers while South Africa moves towards a wholesale electricity market structure, Sekgota added.
Webinar participants argued that reforms aimed at expanding competition in the electricity sector are necessary to attract private investment, increase generation capacity and reduce reliance on a monopoly market structure.
