Eskom launching new company in South Africa to drive renewable energy

Johannesburg – Eskom has officially launched Eskom Green, a new renewable energy business that will focus on developing utility-scale clean energy projects and helping large electricity users reduce their carbon emissions.

The new company marks a significant milestone in Eskom’s transformation strategy as the state-owned power utility seeks to diversify beyond coal-fired electricity generation while supporting South Africa’s transition to a lower-carbon economy.

What is Eskom Green?

Eskom Green has been established as a dedicated renewable energy business tasked with accelerating the development of large-scale renewable energy projects, including solar, wind and battery energy storage.

According to Eskom, the company will also provide tailored energy solutions to industrial and commercial customers looking to meet their decarbonisation goals while maintaining reliable electricity supplies.

Group Executive for Eskom Renewables, Rivoningo Mnisi, said the new business is designed to increase the availability of renewable energy and support South African industries as they transition to cleaner energy sources while remaining globally competitive.

Supporting South Africa’s energy transition

The launch of Eskom Green forms part of Eskom’s long-term strategy to reshape its business model and expand renewable electricity generation.

The utility plans to develop up to 32 gigawatts (GW) of renewable energy capacity by 2040 as it gradually shifts towards a more diversified energy mix.

Eskom said the new business will work alongside the company’s generation, transmission and distribution divisions to improve energy security while reducing greenhouse gas emissions.

New funding opportunities

One of Eskom Green’s objectives is to attract investment for renewable energy infrastructure.

The business has been structured to improve Eskom’s ability to raise capital for renewable energy projects, enabling faster deployment of new generation capacity while supporting South Africa’s climate commitments.

The utility believes the new structure will help unlock funding opportunities from both local and international investors interested in financing clean energy developments.

Benefits for businesses

Large electricity users are expected to benefit from Eskom Green through access to long-term renewable energy solutions that can help lower their carbon footprint and improve energy reliability.

The company will also support industries seeking to meet environmental standards required by international export markets, where demand for low-carbon production continues to grow.

Part of Eskom’s broader restructuring

The creation of Eskom Green comes as Eskom continues implementing broader reforms aimed at modernising South Africa’s electricity sector.

The launch follows the unbundling of parts of Eskom’s operations, including the establishment of the National Transmission Company South Africa (NTCSA), as government works to improve efficiency and encourage greater investment in electricity infrastructure.

Looking ahead

Eskom says Eskom Green will play a central role in expanding renewable energy generation while helping secure reliable electricity supplies for South Africa’s economy.

As demand for cleaner energy continues to grow, the new business is expected to become one of the utility’s key platforms for delivering utility-scale renewable energy projects over the coming decades.