Eskom Launches Renewable Energy Unit as Minister George Backs Bold Green Shift

The Minister’s support follows his decision on 31 March 2025 to grant conditional emissions exemptions to several of Eskom’s coal-fired power stations.

In a landmark move for South Africa’s energy future, Minister of Forestry, Fisheries and the Environment, Dr Dion George, has officially welcomed Eskom’s issuance of a tender to establish a standalone renewable energy business unit. This initiative marks a pivotal moment in Eskom’s restructuring efforts and in the country’s broader journey toward achieving a low-carbon, climate-resilient economy.

Speaking on Monday, Minister George lauded the utility’s renewed commitment to sustainable energy, stating, “This significant step reflects Eskom’s dedication to accelerating renewable energy deployment and supporting South Africa’s transition to a cleaner, more sustainable energy future, consistent with the nation’s Just Energy Transition (JET) objectives and commitments under the Paris Agreement.”

A Response to Emissions Challenges

The Minister’s support follows his decision on 31 March 2025 to grant conditional emissions exemptions to several of Eskom’s coal-fired power stations. These exemptions were granted under strict terms, reinforcing the urgent need to accelerate the integration of renewable energy sources to meet compliance with South Africa’s Minimum Emissions Standards (MES).

According to the Minister, the creation of an agile, independent renewable energy subsidiary directly addresses the conditions attached to those exemptions. “The establishment of this independent subsidiary, structured to operate with agility and encourage public-private partnerships, directly addresses those conditions,” he said.

Capitalising on Natural Resources and Green Finance

The new business unit is expected to enable Eskom to better capitalise on South Africa’s abundant solar and wind resources. It will also help Eskom position itself to access competitive green financing, support economic diversification, and create long-term value for the environment and the economy.

“This new structure not only enhances Eskom’s competitiveness in the global energy arena but also supports the nation’s broader environmental goals. It opens doors for innovation, job creation, and meaningful climate action,” Dr George added.

A Call for Transparency and Inclusivity

While welcoming the move, the Minister underscored the importance of transparency and inclusivity in the tender process. “I urge Eskom to ensure that the tender process is transparent, competitive, and inclusive—fostering opportunities for both local and international expertise to participate meaningfully.”

He noted that the Department of Forestry, Fisheries and the Environment (DFFE) would play an active role in monitoring the progress of the renewable energy unit to ensure alignment with South Africa’s Nationally Determined Contributions (NDCs), the 2050 net-zero emissions target, and compliance with emissions regulations.

Encouraging Private Sector Participation

Dr George also called on Independent Power Producers (IPPs), entrepreneurs, and private sector investors to step up and support this ambitious undertaking. “The success of this initiative will require the full participation of the private sector. By harnessing collective expertise, capital, and innovation, we can build a resilient, inclusive, and environmentally sustainable energy sector.”

Supporting Socioeconomic Transformation

In line with the principles of a Just Energy Transition, the Minister emphasised that the shift must not only reduce emissions but also promote social equity and economic transformation. “As we move away from fossil fuels, we must ensure that no one is left behind. This includes re-skilling workers, uplifting affected communities, and broadening access to clean energy for all South Africans.”

He reiterated government’s commitment to ensuring the energy transition is both just and inclusive, noting the importance of aligning energy reform with the constitutional mandate to protect public health and well-being.

Looking Ahead

The launch of this renewable energy unit is set to significantly alter the landscape of South Africa’s energy sector. By separating clean energy operations from its traditional coal-heavy portfolio, Eskom takes a decisive step toward becoming a modern, environmentally responsible utility.

“This is a defining moment,” Dr George concluded. “With determination, accountability, and partnership, we can shape an energy future that delivers both prosperity and environmental stewardship.”

As the world watches, South Africa’s progress in its clean energy journey could serve as a model for other nations grappling with the challenge of balancing economic development and climate responsibility.