Eskom Invites Proposals to Launch Independent Renewable Energy Business

Eskom has committed to keeping stakeholders updated on the progress of the new renewable energy subsidiary throughout 2025.

In a bold move to accelerate South Africa’s transition to a more sustainable energy future, Eskom, the country’s state-owned power utility, has issued a formal call for proposals from experienced companies to help establish a new renewable energy business. The initiative forms a central pillar of Eskom’s turnaround strategy, aimed at transforming the utility into a competitive, efficient, and environmentally responsible energy provider.

The announcement, made on Tuesday, outlined Eskom’s intention to partner with firms that can bring proven expertise in renewable energy development, public-private partnerships, and independent power production. The selected companies will support the establishment and operationalisation of a brand-new, independently governed renewable energy subsidiary — a move designed to unlock innovation, investment, and efficiency within the sector.

Strategic Shift Towards Renewable Independence

The new subsidiary is set to operate separately from Eskom’s main operations, creating a focused platform that will lead the utility’s clean energy initiatives. According to Eskom Group Chief Executive Dan Marokane, this separation will allow for improved governance, greater market responsiveness, and a stronger capacity to forge public-private partnerships.

“Agility and efficiency are at the heart of preparing for a competitive marketplace and ensuring we serve our current and future customers with the electricity supply solutions they require,” said Marokane. “By bringing in external expertise from the start, we’re laying the foundation for long-term success through skills transfer and strategic collaboration.”

This initiative aligns with the broader objectives of Eskom’s turnaround strategy, which was launched in 2024 to resolve long-standing challenges such as load shedding, financial instability, and aging infrastructure. Marokane emphasized that the establishment of a renewable energy business is vital to Eskom’s sustainability and South Africa’s overall energy security.

Evaluation Criteria and Proposal Guidelines

Eskom will assess prospective partners using a range of stringent evaluation criteria. These include:

• A demonstrated track record of successfully founding and scaling renewable energy companies.

• The ability to structure and execute public-private partnerships (PPPs) and special purpose vehicles (SPVs) that have delivered tangible, measurable results.

• Deep expertise in the Independent Power Producer (IPP) model, including financial structuring and legal frameworks.

• Technical competence in renewable energy project implementation.

• In-depth knowledge of the local and international renewable energy landscape.

The selected partners will provide critical support for a period of 12 months. Proposals must be submitted no later than 10:00 am on 7 May 2025, and application forms and detailed submission requirements are available on the Eskom website.

Building a Diversified, Low-Carbon Energy Future

Eskom reaffirmed its commitment to building a balanced and diversified energy portfolio. While the utility continues to leverage its existing coal and nuclear assets, it is actively integrating new energy sources such as gas (for baseload power), solar, wind, and energy storage technologies.

Notably, Eskom has already identified an initial pipeline of 2 gigawatts (GW) of clean energy projects set to be implemented by 2026. In the longer term, the utility has scoped out a pipeline of over 20GW of potential clean energy projects, signalling its serious intent to become a leading force in the clean energy transition.

In addition to new generation, Eskom is prioritizing the implementation of energy storage systems — including Battery Energy Storage Systems (BESS) and pumped hydro storage — to improve grid stability and support variable renewable generation.

Marokane also highlighted the global relevance of the new renewable energy subsidiary. “The creation of our renewable energy business also forms part of Eskom’s focus both in this country and internationally to identify the latest developments and strategies to reduce carbon emissions and other air pollutants,” he said.

Ongoing Updates and Industry Collaboration

Eskom has committed to keeping stakeholders updated on the progress of the new renewable energy subsidiary throughout 2025. The utility is positioning itself as a key player not only in domestic energy reform but also in global efforts to reduce carbon emissions and embrace clean, sustainable energy solutions.

With mounting pressure to transition from carbon-intensive power generation and ensure a reliable supply of electricity for a growing economy, this latest move signals Eskom’s determination to evolve with the times — and to do so with the help of private sector expertise.

For More Information

Interested parties are encouraged to visit www.eskom.co.za to access the full request for proposals and submission guidelines.

Deadline for proposal submission: 7 May 2025, 10:00 AM (SAST) Support period: 12 months from project initiation