South African power utility Eskom has launched a dedicated renewable energy business unit as it accelerates plans to transform its generation portfolio and expand clean energy production over the next two decades.
The new division, known as Eskom Green, was officially unveiled on Tuesday and forms a central part of the utility’s long term strategy to develop up to 32 gigawatts of renewable energy capacity by 2040.
The launch marks another significant step in Eskom’s transition away from its traditional dependence on coal-fired power generation. Although the utility remains the dominant electricity supplier in Africa’s most industrialised economy, generating most of its power from a fleet of ageing coal stations, it has increasingly positioned renewable energy as a cornerstone of its future operations.
Eskom has previously outlined plans to significantly reduce its carbon footprint and shift towards cleaner sources of electricity generation by 2040, in line with global energy transition trends and South Africa’s climate commitments.
According to the utility, Eskom Green will initially operate as a division within Eskom Holdings before eventually being established as a wholly owned subsidiary with its own independent board and governance structure.
The new unit will focus on developing utility scale renewable energy projects, including solar, wind and battery storage facilities, aimed at meeting growing demand for reliable and sustainable electricity.
Particular attention will be given to energy intensive industries such as mining and manufacturing, sectors that are increasingly seeking cleaner power solutions to meet environmental targets while ensuring energy security.
Eskom Green intends to offer long term renewable energy contracts supported by battery storage technology, enabling customers to access more stable electricity supplies even when renewable generation fluctuates.
The utility said the division aims to make approximately six gigawatts of carbon free electricity available by 2030 through a growing pipeline of renewable energy and energy storage projects currently under development.
The initiative comes as South Africa continues efforts to strengthen electricity generation capacity following years of power shortages that disrupted economic activity and affected businesses and households across the country.
Renewable energy has become an increasingly important component of South Africa’s energy mix, with both public and private sector investment accelerating in recent years. Analysts view Eskom’s entry into large scale renewable generation as a potentially important development in supporting energy security while reducing dependence on coal.
Eskom said funding for the initial phases of the programme has already been allocated within its approved capital expenditure framework. The projects will be financed through on balance sheet funding, allowing the utility to begin implementation while exploring future financing opportunities as the portfolio expands.
The creation of Eskom Green reflects the utility’s broader efforts to modernise its operations and position itself within a rapidly changing global energy landscape. As demand for cleaner electricity continues to grow, the success of the new division is expected to play a crucial role in determining how quickly South Africa can achieve its renewable energy ambitions while maintaining reliable power supplies for the economy.
