Eskom’s unveiling of Eskom Green marks a decisive pivot for South Africa’s power utility, promising a surge of renewable capacity that could reshape the national energy landscape. The new arm, launched in Sandton on Tuesday, is set to deliver up to 32 GW of solar, wind, hydro and storage by 2040, positioning the state‑owned giant as a key partner rather than a competitor to independent power producers (IPPs). Group CEO Dan Marokane hailed the move as the natural next step after stabilising the grid and meeting demand “100 % of the time” following three years of severe load‑shedding.
Eskom Green is presented as a fourth pillar alongside generation, transmission and distribution, with board chairman Mt Mteto Nyati insisting the unit will complement – not crowd out – private developers. “We bring capabilities that amplify the market, not replace it,” he said, underscoring the utility’s intent to de‑risk the transition by leveraging its extensive land bank and existing grid infrastructure.
The renewable push is anchored in clear milestones. The utility aims for 5.6 GW by 2030, scaling to 21 GW by 2035 and finally 32 GW by 2040. These targets are underpinned by a pricing strategy that mirrors market levels, ensuring the output remains affordable for South African households and industry alike.
Eskom Green’s renewable roadmap and key milestones
| Year | Target Capacity (GW) | Primary Technologies | Key Projects |
|---|---|---|---|
| 2030 | 5.6 | Solar, wind, hydro, storage | 75 MW solar‑coal hybrid at Lethabo |
| 2035 | 21 | Solar, wind, pumped hydro, batteries | Multiple IPP partnerships, 2 GW signed |
| 2040 | 32 | Integrated renewable mix | Expansion of existing sites, new offshore wind |
The table shows Eskom Green’s stepped ambition, with each phase adding diverse technologies to smooth out intermittency and lock in affordable power supply.
Rivoningo Mnisi, group executive for renewables and head of Eskom Green, stressed that consistency is the sector’s biggest hurdle: solar dwindles after sunset, wind breezes are fickle, and both can destabilise the grid without robust storage. To counter this, the unit will combine generation with battery and pumped‑storage solutions, creating a balanced portfolio capable of delivering power around the clock.
Partnership is at the heart of the strategy. Mnisi highlighted that “no single organisation can deliver the needs alone” and that Eskom Green will act as a “partnership platform” for IPPs and financiers. By structuring projects with clear governance and high execution standards, the utility hopes to attract over 2 GW of existing IPP agreements into its broader renewable framework.
The first flagship venture under the Eskom Green banner is a R1.2‑billion, 75 MW solar plant sited beside the Lethabo coal‑fired station in the Free State. Expected to generate roughly 147 GWh per year, the plant will supply power to about 60 000 households and serve as a testbed for integrated solar‑coal operations that could ease the transition for other legacy plants.
Energy Minister Kgosientsho Ramokgopa reinforced the message that coal is not being abandoned but re‑imagined. “Coal remains a foundational policy,” he said, noting that Medupi and Kusile are now complete. “Our challenge is emissions, not coal itself, and Eskom Green is part of the solution.” The minister warned against the “crowding‑out” narrative, pointing to the urgent need for a state‑led guarantee of clean electricity after load‑shedding exposed the limits of relying solely on the market.
Ramokgopa also teased the imminent announcement of what he called the “single biggest energy partnership in the Southern Hemisphere,” encompassing large‑scale solar and battery installations that will dovetail with provincial projects. The rollout is slated for the next two weeks, signalling a rapid acceleration of the renewable agenda.
From a financial perspective, Eskom Green will not be a premium product. Mnisi explained that market‑aligned pricing is essential to keep electricity affordable, especially for low‑income consumers who have borne the brunt of past load‑shedding. The utility’s access to land already linked to the grid is a decisive edge, allowing new renewable sites to connect swiftly without the extensive new infrastructure costs that independent developers often face.
Board chairman Nyati addressed critics head‑on, asserting that the utility’s scale and responsibility for the national grid position it to “de‑risk the energy transition” and enable all power producers to thrive together. He reflected on the stark contrast to three years ago when “there was no plan for renewables” and public sentiment suggested Eskom had “no future.” Today, the board is “convinced Eskom has a big role to play in South Africa’s just energy transition.”
The political backdrop remains supportive. Ramokgopa reminded the audience that South Africa ranks among the top five global regions for solar potential, urging Eskom to capitalise on this natural advantage. He dismissed the idea that market forces alone could resolve the generation deficit, citing the failure of private solutions during the worst load‑shedding periods.
As Eskom Green moves from announcement to execution, the real test will be its ability to deliver on the ambitious targets while maintaining affordable tariffs and grid stability. The utility’s combined renewable and storage portfolio, backed by strategic partnerships and government reinforcement, aims to demonstrate that a state‑owned entity can drive clean energy at scale without stifling private investment. If successful, Eskom Green could become the cornerstone of a more resilient, sustainable and inclusive South African power system.