Eskom Launches Renewable Energy Offtake Programme for 291MW Solar Power

Eskom stated that its goal is to reshape the company’s generation profile by 2040, with renewables and energy storage systems playing a much larger role.

In a landmark development for South Africa’s energy transition, Eskom has officially launched its first-ever Renewable Energy Offtake Programme, opening a new chapter in the utility’s strategy to build a competitive, cleaner, and more resilient energy future.

The programme, unveiled through a Request for Proposal (RFP), will see Eskom offering 291 megawatts (MW) of solar photovoltaic (PV) capacity to large power users through long-term Power Purchase Agreements (PPAs). This marks a significant pivot in Eskom’s operational model as it transitions its generation mix away from an overdependence on coal towards a diversified portfolio that increasingly integrates renewable energy sources.

A Strategic Shift Towards Clean Power

Eskom stated that its goal is to reshape the company’s generation profile by 2040, with renewables and energy storage systems playing a much larger role. The programme builds on a prior Expression of Interest (EOI) process, which revealed strong appetite among industrial and commercial customers for direct renewable energy procurement.

By entering into PPAs with Eskom, companies will not only secure long-term clean energy supply but also strengthen their ability to:

• Reduce carbon footprints in line with global decarbonisation goals.

• Enhance sustainability credentials and meet Environmental, Social, and Governance (ESG) targets.

• Green their supply chains, boosting competitiveness in global markets.

The PPAs will range from 5 to 25 years, with renewable energy supplied in phases. The earliest project is expected to reach commercial operation by December 2027.

Leadership Perspectives

Dan Marokane, Group Chief Executive of Eskom, described the launch as a pivotal step in the utility’s turnaround strategy.

“This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends. We are not only focused on ending loadshedding but also pivoting Eskom into a sustainable and competitive company, while ensuring energy security through a customer-centric approach,” Marokane said.

Agnes Mlambo, Acting Group Executive of Eskom Distribution, stressed that the initiative showcased Eskom’s ability to innovate.

“By offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations. Structured engagement with the private sector will accelerate the integration of clean energy into the grid, ensuring a secure and competitive energy supply,” she added.

Wider Energy Transition Efforts

The Renewable Energy Offtake Programme is part of Eskom’s broader plan to build a balanced energy mix that includes:

• Coal – for near-term supply security.

• Nuclear and gas – as stabilising baseload sources.

• Renewables – solar, wind, and hydro for sustainable generation.

• Energy storage solutions, including Battery Energy Storage Systems (BESS) and pumped hydro, to stabilise intermittent renewable power.

Eskom also announced that its dedicated renewable energy business unit will play a critical role in scaling up projects. By 2026, the utility aims to deliver 2 gigawatts (GW) of construction-ready renewable capacity, with a long-term vision of building up to 32GW of renewable and green hydrogen projects by 2040.

Significance for South Africa

The launch of the programme signals Eskom’s proactive role in decarbonising South Africa’s power sector, which has long been dominated by coal. It also aligns with South Africa’s climate commitments under the Paris Agreement and supports the Just Energy Transition Partnership (JETP) with international partners.

By directly engaging large industrial and commercial users, the programme provides a win-win model: businesses secure clean and stable energy supply at predictable costs, while Eskom accelerates its transition and strengthens the country’s energy security.

Looking Ahead

With strong market interest already evident, the Renewable Energy Offtake Programme could become a blueprint for future models of public-private cooperation in clean energy. If successfully scaled, it may lay the foundation for South Africa to move away from chronic energy shortages and reliance on coal, towards a sustainable, competitive, and climate-resilient energy future.