Eskom Green launches to accelerate South Africa’s renewable transition, targeting 6 GW carbon-free capacity by 2030 with transparent energy pricing.
South Africa’s state-owned power utility Eskom has taken a significant step in its energy transformation journey with the launch of Eskom Green, a dedicated business unit focused on expanding the country’s renewable energy capacity. The initiative represents a major shift for the utility, which has historically depended heavily on coal-fired power generation, and signals its commitment to developing cleaner and more sustainable energy solutions.
According to reports, Eskom Green has been established to accelerate the deployment of renewable energy technologies, including solar and wind power, as well as emerging solutions such as green hydrogen. The new entity forms an important part of Eskom’s broader restructuring and unbundling strategy, designed to create more specialised business divisions capable of responding to the changing energy landscape.
Eskom Green will operate as a wholly owned subsidiary under Eskom but will have its own independent board responsible for guiding its strategic direction. The separation is expected to provide greater flexibility, improved governance, and a stronger focus on developing renewable projects that can support South Africa’s long-term energy security and decarbonisation goals.
The South African government believes that increasing the share of renewable energy in the country’s electricity mix could also help stabilise and potentially reduce rising electricity costs. Minister of Electricity and Energy Kgosientsho Ramokgopa explained that combining different renewable energy sources can create a more reliable and consistent electricity supply, approximating a stable baseload system. He highlighted that technological advancements and the continued growth of renewable capacity are expected to make clean energy increasingly affordable over time.
The minister further noted that a larger contribution from renewable energy could play a key role in slowing the rapid increase in electricity prices experienced by consumers and businesses. Lower generation costs from renewable technologies are expected to provide economic benefits while simultaneously supporting South Africa’s transition away from high-carbon energy sources.
Eskom Green has emphasised that its pricing structure will be transparent, with customers paying the wholesale cost of electricity without hidden margins. The company clarified that charges associated with electricity transmission, distribution networks, wheeling services, and other regulated costs will be listed separately and will not be marked up by Eskom Green. This approach is intended to provide customers with a clear understanding of how much they are paying for energy generation compared with network-related services.
The new business unit will initially target large industrial customers, particularly companies in the mining and manufacturing sectors. It plans to supply clean energy through mechanisms such as Section 34 Integrated Resource Plan allocations and direct bilateral power purchase agreements (PPAs), helping industries achieve their decarbonisation objectives and reduce their environmental footprint.
Following its initial industrial focus, Eskom Green intends to expand into the broader Eskom Distribution market through its eDX Edge offering. It also plans to participate in the developing South African Wholesale Electricity Market (SAWEM), engage with the Southern African Power Pool (SAPP), and collaborate with municipalities to increase access to renewable electricity solutions.
Funding for the early stages of Eskom Green’s projects has already been incorporated into Eskom’s approved capital expenditure programme and will be supported through the utility’s balance sheet. The organisation’s development plans align closely with South Africa’s Integrated Resource Plan (IRP) 2025, which targets renewable energy capacity additions of 5.6 GW by 2030, 21 GW by 2035, and 32 GW by 2040.
As part of this national renewable energy expansion, Eskom Green aims to deliver approximately 6 GW of carbon-free electricity capacity by 2030. The target will be achieved through a growing portfolio of renewable generation and energy storage projects currently under development, positioning the company as a key driver of South Africa’s cleaner and more resilient energy future.
Market impact: The launch of Eskom Green is also expected to create significant opportunities across the renewable energy value chain, driving increased demand for products such as solar photovoltaic (PV) panels, wind turbines, battery energy storage systems (BESS), green hydrogen production equipment, electrolyzers, power inverters, transformers, and smart grid solutions. As Eskom expands its renewable generation portfolio and targets 6 GW of carbon-free capacity by 2030, suppliers of clean energy technologies and electrical infrastructure are likely to benefit from rising investment. Additionally, industries such as mining and manufacturing may accelerate the adoption of renewable energy systems and energy-efficient equipment to meet their decarbonisation goals through cleaner electricity procurement.
