Eskom has cleared the final regulatory hurdle needed to officially launch its dedicated renewable energy business.
The Eskom Green subsidiary now has Section 54(2) approvals under the Public Finance Management Act, along with clearance under the Debt Relief Act.
This ring-fenced platform will operate as a wholly owned subsidiary with its own independent board.
The launch caps a broader turnaround story. Group CEO Dan Marokane noted that Eskom has moved from struggling to keep the lights on and struggling financially three years ago, to now meeting demand consistently.
Renewables represent the utility’s natural next step in keeping that momentum going.
The Scale of Eskom Renewable Energy Projects Underway
Eskom renewable energy projects already in the pipeline give a clear sense of scale.
The utility expects Eskom Green to have approximately 6GW of carbon-free electricity available by 2030 through projects already under development.
Seventeen priority projects have been identified across Eskom’s existing coal-fired power station sites, allowing the company to leverage infrastructure already in place to speed up deployment and cut costs.
Among the earliest projects is the 75MW Lethabo Solar PV facility in the Free State.
Additional developments are planned at Komati Power Station. At least 2GW of renewable energy and pumped-storage projects are expected to move into implementation starting in 2026.
Rivoningo Mnisi, Eskom’s Group Executive for Renewables, said the company is preparing to go to market for partners on a 2 to 3GW tranche of renewables, alongside a pumped-storage programme of roughly 1.5GW.
Understanding the South Africa 32GW Renewables 2040 Target
The South Africa 32GW renewables 2040 goal aligns directly with the country’s Integrated Resource Plan 2025.
That plan sets national renewable energy targets of 5.6GW by 2030, 21GW by 2035, and 32GW by 2040.
Eskom Green’s contribution is considered essential to meeting these broader national goals.
It is worth putting that 32GW figure in context. It represents roughly a third of the 102GW that the 2025 Integrated Resource Plan says South Africa will need by 2042.
Marokane has been careful to emphasise this point, noting that the target still leaves more than two-thirds of the country’s renewable energy generation opportunities open to the private sector.
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Why Eskom Green Private Sector Collaboration Matters
Eskom Green private sector collaboration sits at the center of how this initiative is structured.
Leadership has been explicit that the new unit will partner with private developers rather than compete with them. Mnisi described the objective in blunt terms, saying the goal is simply to make renewables viable for South Africa at scale.
The development model reinforces this collaborative approach. Eskom Green’s long-term pipeline will rely on dedicated project special purpose vehicles to finance the 32GW build-out.
This structure limits recourse to Eskom’s own balance sheet while opening the door for private capital and partners to participate directly in individual projects.
A Phased Rollout Strategy
Eskom Green’s initial focus will be on large industrial customers, particularly in mining and manufacturing.
These sectors need round-the-clock renewable energy solutions to meet their own decarbonisation goals.
This foundation phase will run through allocations under the Integrated Resource Plan and bilateral power purchase agreements, backed by take-or-pay contracts that give the underlying special purpose vehicles a firm revenue base.
A second phase will expand the business further. This includes serving the Eskom Distribution market, the developing South African Wholesale Electricity Market, regional customers through the Southern African Power Pool, and municipalities.
In terms of technology mix, the portfolio will lean heavily toward solar PV, supported by battery energy storage, pumped storage, and wind.
What Comes Next
Eskom Green was established following benchmarking research involving more than 20 utilities worldwide, which pointed to a need for more agile decision-making and flexibility than a traditional state utility structure typically allows.
With governance and regulatory approvals now finalised, the business is positioned to move quickly on onboarding partners for its early project tranches.
For South Africa, this launch represents more than just another renewable energy announcement.
It signals a structural shift in how the country’s dominant utility plans to participate in, rather than simply regulate, the renewable energy market.
If Eskom Green delivers on its early targets, it could meaningfully accelerate the pace of South Africa’s broader energy transition while leaving substantial room for continued private sector growth alongside it.
