In its effort to foster a “competitive future energy industry” and integrate more clean power into the national grid, Eskom has announced the launch of its first-ever renewable energy offtake programme.
The power utility said that it was transitioning its generation mix from predominantly coal to a blended portfolio with an increasing proportion of clean energy sources by 2040.
Reshaping
The programme, unveiled through a request for proposal (RFP), invites large power users to procure 291MW of solar photovoltaic (PV) capacity through long-term power purchase agreements (PPAs) from Eskom-owned renewable energy sites.
According to Eskom, this programme follows a successful expression of interest (EOI) process and extensive engagement with commercial and industrial customers, which revealed strong demand for direct contracting through long-term PPAs.
These agreements enable businesses to align with global sustainability standards, reduce carbon footprints, and green their supply chains, enhancing competitiveness.
The RFP offers tailored solutions that meet operational requirements while contributing to South Africa’s decarbonisation goals.
Successful bidders will enter PPAs ranging from five to 25 years, with renewable energy delivered in phases from multiple Eskom projects. The earliest project is expected to reach commercial operation by December 2027.
Eskom group chief executive, Dan Marokane, said the programme was a crucial step in reshaping the company’s generation mix.
“This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives.
“We have seen strong interest in Eskom’s capabilities in green energy supply, which this programme demonstrates.
"Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach,” Marokane said.
Resilient energy future
Eskom distribution acting group executive, Agnes Mlambo, said the programme signalled Eskom’s innovation in building a resilient energy future.
“This programme demonstrates Eskom’s commitment to innovation and building a cleaner, more resilient energy future.
"By offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply, through customer-centred solutions,” Mlambo said.
She added that structured engagement with the private sector would give impetus to Eskom’s efforts to create a sustainable pathway for clean power integration into the grid.
Eskom said it continues to develop a balanced energy mix, comprising coal, nuclear, gas, renewables, and energy storage solutions such as battery energy storage systems and pumped hydro.
The power utility added that a renewable energy business will accelerate deployment of green projects, targeting two gigawatts (GW) of construction-ready capacity by 2026 and scaling up to 32GW, including green hydrogen projects, by 2040.
