Eskom Holdings SOC Ltd. has asked South Africa’s biggest power users to buy solar energy, part of its plan to reduce heavy reliance on coal. The utility still generates more than 80% of its electricity from the fuel, making it one of the world’s biggest polluters.
The call invites industrial clients to sign long-term purchase agreements of five to 25 years. Eskom expects the first projects to come online by the end of 2027.
The move places Eskom in direct competition with private renewable energy firms, adding new momentum to the country’s clean energy drive. Earlier this month, business groups urged the company to drop its court challenge against trading licences awarded by the regulator. Electricity Minister Kgosientsho Ramokgopa also called on Eskom to suspend or withdraw the case.
After years of crippling blackouts, Eskom has managed to stabilise the grid. Government reforms are underway to split the utility into three divisions, generation, transmission and distribution, while opening the market to private traders.
Eskom says a dedicated renewable energy arm will speed up the shift. The unit aims to deliver two gigawatts of ready-to-build projects by 2026 and expand to 32 gigawatts by 2040. The plan also includes green hydrogen, which had not featured in Eskom’s earlier clean energy forecasts.
“Working with the private sector in this structured way gives momentum to Eskom’s efforts to build a sustainable pathway for clean power in the grid,” said Agnes Mlambo, acting group executive of Eskom Distribution.
Eskom set 19 September as the deadline for solar power proposals.
