Eskom’s clean energy era begins with 291MW solar drive

Eskom has taken a major step in shifting South Africa’s energy mix with the launch of its first Renewable Energy Offtake Programme.

The initiative invites large power users to procure 291MW of solar photovoltaic (PV) capacity through long-term power purchase agreements (PPAs) from Eskom-owned renewable energy sites.

The programme follows an expression of interest process and extensive engagement with commercial and industrial customers, which showed strong demand for direct contracting through PPAs. These agreements allow businesses to align with global sustainability standards, reduce carbon footprints, and green supply chains, boosting competitiveness.

Electricity generation and distribution both showed slight declines in June 2025 compared with the same period last year, although overall output and consumption edged up in the second quarter compared with the first. The launch of the offtake programme, particularly focused on solar PV, is part of Eskom’s push to stabilise supply while increasing renewable capacity.

Crown Prince Adil Nchabeleng, independent energy expert, has estimated that less than 1% of households have solar, making the point that most solar subsidies have gone to big businesses and not households. He added that the subsidies were limited to panels and didn’t include other aspects such as batteries.

In a world where energy dynamics are constantly shifting, Sakhile Ngcongwane, Business Development Manager at SolarAfrica, said that renewable energy is no longer confined to the simplistic installation of a few rooftop panels.

Successful bidders will enter PPAs ranging from five to 25 years, with energy delivered in phases from multiple Eskom projects. The first project is expected to reach commercial operation by December 2027.

“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 for environmentally sustainable solutions,” said Eskom CEO Dan Marokane.

Marokane noted that, “just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach”.

Eskom Distribution acting group executive Agnes Mlambo added, “by offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply. Engaging with the private sector in this structured manner gives impetus to Eskom’s efforts to create a sustainable pathway for clean power integration into the grid.”

Eskom continues to develop a balanced energy mix, including coal, nuclear, gas, renewables, and energy storage solutions such as battery energy storage systems and pumped hydro.

A dedicated renewable energy business will accelerate deployment, targeting 2GW of construction-ready projects by 2026 and scaling up to 32GW, including Green Hydrogen, by 2040.

IOL Business