Eskom has officially launched Eskom Green, a new renewable energy division designed to accelerate the development of large-scale renewable projects and support major industrial users in achieving their decarbonisation and energy transition objectives.
Rivoningo Mnisi, Eskom’s Group Executive for Renewables, confirmed the initiative follows extensive global benchmarking of leading utilities. According to Mnisi, top-performing energy companies worldwide have prioritised sustainability-focused strategies—a model Eskom now aims to adopt to position South Africa for a sustainable energy future.
Addressing concerns about financing, Mnisi clarified that renewable projects are typically funded through project finance structures, specifically Special Purpose Vehicles (SPVs). These entities allow for innovative fundraising approaches that do not rely directly on Eskom’s primary balance sheet. The utility plans to crowd in financiers globally to participate in these SPVs, mitigating reliance on its own indebted balance sheet.
Grid connectivity remains a critical challenge, with many renewable projects stalled due to limited transmission capacity—particularly in solar-rich regions like the Northern Cape. While the Minister of Electricity and Energy has pledged a 13-year programme to double South Africa’s grid capacity, Eskom Green intends to leverage existing advantages. Mnisi noted that Eskom is among the country’s largest landowners, with many power stations situated near established grid infrastructure. The utility’s Just Energy Transition strategy will prioritise developing renewable projects adjacent to decommissioning or existing plants, enabling faster, cheaper, and more scalable grid connections within the next five years.
Eskom Green has outlined clear capacity targets:
- In 2026, the division will bring a hybrid solution to market, comprising 2GW of solar PV and battery storage, plus approximately 1.5GW of pumped storage—totaling nearly 3.5 to 4GW.
- By 2030, Eskom aims to deliver 5.6GW from a mix of renewable technologies, including wind.
- The 2035 target is approximately 21GW.
- By 2040, the division plans to reach 32GW of renewable capacity.
Mnisi acknowledged that 32GW roughly matches South Africa’s current total electricity demand. However, he emphasized that renewables operate at a lower load factor compared to baseload technologies like coal, gas, or nuclear. Consequently, 30GW of renewable capacity delivers an effective output closer to 10GW of conventional generation. To ensure grid stability and enable greater renewable integration, Eskom will continue advancing its 3GW gas programme by 2030 and its 5GW nuclear build, alongside expanding pumped storage capabilities.
Beyond energy supply, Mnisi highlighted the broader economic potential of the initiative. With South Africa having seen limited industrialisation or clean job creation from renewable investments over the past decade, Eskom Green’s ambitious rollout presents an opportunity to stimulate local manufacturing, create sustainable employment, and drive economic growth through the domestic production of renewable energy components.
