Eskom has officially secured final approvals under Section 54(2) of the Public Finance Management Act (PFMA) to establish ‘Eskom Green’, a new, wholly-owned subsidiary dedicated to scaling up renewable energy generation. The entity aims to deploy a pipeline of up to 32 gigawatts (GW) of renewable energy and storage projects by 2040, marking a significant shift in the utility’s long-term operational strategy.
Operational Structure And Strategic Objectives
Eskom Green will function as a specialist utility-scale renewable energy business, governed by an independent board to streamline decision-making and project execution. The unit identifies 17 high-priority projects across existing coal-fired power station sites, with a set target of 6GW of solar, wind, and storage capacity by 2030.
Eskom Green is a utility-scale renewable energy business that rapidly accelerates the options available to South Africa’s industries to decarbonise and transition industrial and productive capacity to maintain export competitiveness.
Speaking at a recent briefing, group executive for Eskom Renewables, Rivoningo Mnisi, emphasised that the subsidiary serves as a crucial tool for industrial clients to manage their decarbonisation requirements. Eskom Group Chief Executive Dan Marokane added that the initiative is focused on delivering leading-edge, scalable solutions to maintain the competitiveness of South African industries within global markets.
Funding Models And Energy Security
To mitigate fiscal risk to the national government, the subsidiary will utilise dedicated special purpose vehicles (SPVs) to secure diverse funding streams for its infrastructure pipeline. This approach aligns with broader national efforts under the Integrated Resource Plan 2025 to transition away from a strictly vertically integrated utility model towards a more flexible energy landscape.
South Africa and our customers were expecting us to participate in this. The Board realised that it was leading a company that would not have a future if there were no plans to participate in renewable energy.
Eskom Chairman Mteto Nyati highlighted that the transition is a prerequisite for the utility’s continued long-term viability in an evolving energy market. The establishment of this unit is expected to play a foundational role in diversifying the national energy mix while addressing prolonged supply constraints.
Further announcements regarding the specific project timelines and initial procurement phases are expected as the subsidiary begins its operational rollout.