South Africa’s state-owned power utility, Eskom Holdings, has officially launched Eskom Green, a dedicated renewable energy business that will focus on developing large-scale clean energy projects and supporting the country’s transition toward a lower-carbon economy.
The new entity forms part of Eskom’s broader restructuring programme and is expected to play a key role in expanding renewable electricity generation while helping industrial customers reduce emissions and meet increasingly stringent environmental requirements in global markets.
According to Eskom, the establishment of Eskom Green follows extensive international research involving more than 20 utility companies worldwide. The study highlighted the need for specialised financing structures, new investment models and flexible project delivery approaches that differ significantly from the utility’s traditional coal-based generation model.
Eskom believes the new business will help unlock renewable energy opportunities at a faster pace while supporting South Africa’s long-term energy security objectives.
Eskom Green to support industrial decarbonisation
Eskom Group Executive for Renewables, Rivoningo Mnisi, said the company is being positioned as a utility-scale renewable energy provider capable of supplying large energy users with cleaner electricity options.
He noted that many South African industries are facing growing pressure from international customers and trading partners to reduce carbon emissions throughout their production processes.
As global markets increasingly favour low-carbon products and supply chains, access to renewable energy is becoming an important factor in maintaining export competitiveness.
Under its proposed operating model, Eskom Green will provide electricity generated from its own renewable assets while supplementing supply through storage systems and other energy-balancing arrangements. This approach is intended to ensure reliable energy delivery even when renewable generation fluctuates.
The company also stated that pricing structures will remain transparent. Energy charges will be passed on at cost, while network and transmission-related fees imposed by electricity operators will be listed separately rather than incorporated into the energy tariff.
6GW pipeline planned by 2030
One of Eskom Green’s primary objectives will be accelerating renewable energy deployment at existing power station sites.
Eskom has identified 17 priority projects that could collectively add around 6GW of new generation capacity by 2030. At least 2GW of this capacity is expected to come from renewable energy and pumped-storage developments scheduled to begin progressing from 2026.
Among the first projects is the 75MW Lethabo Solar PV Project in the Free State. The development will combine new solar generation infrastructure with existing power station assets, allowing Eskom to maximise the use of established grid connections and facilities.
The utility plans to replicate this model at other locations, including the Komati Power Station, which has already become a symbol of South Africa’s energy transition efforts following the retirement of several coal-fired generating units.
Eskom Group Chief Executive Dan Marokane described the launch as an important milestone built on decades of engineering expertise and operational experience accumulated within the utility.
While Eskom Green currently remains part of Eskom Holdings, the company confirmed that it is expected to become a wholly owned subsidiary with its own independent board once all governance, shareholder and regulatory approvals have been obtained.
Funding for the initial project pipeline has already been included within Eskom’s approved capital expenditure programme and will be supported through existing financing arrangements rather than additional large-scale project borrowing.
The launch of Eskom Green signals a significant shift in South Africa’s electricity sector as the country seeks to balance energy security, economic growth and climate commitments while modernising one of Africa’s largest power systems.
Source: Eskom Holdings