Eskom has officially launched Eskom Green, a new utility-scale renewable energy business designed to fast-track large renewable projects and help South Africa's biggest power users hit their decarbonisation targets. The division was unveiled on 9 June and marks one of the most significant structural shifts at the utility since unbundling began.
The move follows global benchmarking research across more than 20 utilities, which convinced Eskom that building renewables at scale requires different capital sources, delivery models and project structures from its traditional vertically integrated generation business.
From division to stand-alone subsidiary
Eskom Green sits within Eskom Holdings for now, but the group plans to separate it into a wholly owned subsidiary with its own independent board, subject to governance, regulatory and shareholder approvals. Group chief executive Dan Marokane said the new entity is built on decades of power generation expertise, adding that Eskom is "now putting a stake in the ground" with a development South Africa can be proud of.
Group executive for renewables Rivoningo Mnisi described the business as one that "rapidly accelerates the options available to South Africa's industries to decarbonise" while protecting export competitiveness — a nod to the carbon border taxes looming over SA's industrial exporters.
On pricing, Eskom says the wholesale tariff will be passed through to customers at cost, with network, wheeling and other regulated charges shown as separate line items rather than marked up. When customers contract with Eskom Green, the company takes responsibility for delivering that energy through its own renewable generation, backed by storage and firming arrangements.
6 GW pipeline anchored on coal sites
Eskom has identified 17 high-priority projects to be built at its existing coal-fired power stations, using established grid infrastructure to deliver roughly 6 GW of additional capacity by 2030. That includes at least 2 GW of renewable energy and pumped storage projects expected to start progressing this year.
The first flagship is the 75 MW Lethabo solar PV project in the Free State, which pairs new generation with existing assets, with Komati Power Station next in line. Funding for the initial phases has been allocated within Eskom's approved capital expenditure programme and will be carried on the balance sheet, in line with National Treasury's debt relief conditions — meaning no additional project finance borrowing is required to get started.
For energy-hungry miners and manufacturers under pressure to green their supply chains, a single utility-scale green energy counterparty could be a meaningful new option — provided Eskom can deliver at the pace the market now demands.
Compiled by Business Bagel from reporting by BusinessTech.
