Eskom launching new company in South Africa
Eskom has received approval to proceed with its initiative, Eskom Green, which will serve as the company’s renewable energy division.
Last month, Eskom introduced the utility-scale renewable energy business, alongside a customer strategy aimed at providing a reliable power supply and decarbonising the grid.
This was launched to achieve the goal of adding 32,000MW of new renewable power to the national grid.
Eskom has now secured the necessary approvals in accordance with Section 54(2) of the Public Finance Management Act (PFMA) and the relevant conditions of the Eskom Debt Relief Act.
These approvals will allow Eskom to establish Eskom Green as a dedicated, wholly owned subsidiary for its renewable energy operations and funding activities.
Eskom said that the approvals mark a key governance and unbundling milestone and enable it to proceed with implementing Eskom Green, with the final steps now underway.
The new business is expected to provide solutions such as cleaner coal, natural gas, and nuclear energy to create a balanced portfolio necessary for ensuring a sustainable transition to renewable sources.
“The subsidiary will offer a range of renewable energy solutions tailored to customers’ needs, with a focus on sustainable, reliable and cost-competitive energy supply,” said Eskom.
As a wholly owned subsidiary of Eskom Holdings, Eskom Green is said to operate within a governance framework aligned with the PFMA, the Companies Act, the King Code principles, and applicable shareholder requirements.
This is aimed at enabling appropriate governance agility, competitive market positioning, and improved access to public-private partnerships.
As part of its implementation programme, Eskom said its Eskom Green business will initiate a market process to establish a panel of strategic partners.
This is to support the delivery of renewable energy projects and related customer solutions.
A milestone unlocked for Eskom
“This is an important milestone in the further implementation of Eskom’s strategy in the areas of unbundling, delivering utility-scale renewable energy capacity and reducing carbon emissions and other air pollutants,” said Eskom Group Chief Executive, Dan Marokane.
Marokane said that this milestone is part of Eskom’s customer-focused strategy to diversify the renewable energy supplier base.
He explained that Eskom Green aims to help large power users reduce carbon emissions, remain competitive, and support their growth and industrialisation.
“The 2025 Integrated Resource Plan states that 102GW of renewable energy should be delivered by 2042,” said Marokane.
“In line with this, Eskom Green is targeting to deliver up to 32GW by 2040, which still leaves over two-thirds of the renewable energy generation opportunities open to the private sector.”
“The 2025 Integrated Resource Plan states that 102GW of renewable energy should be delivered by 2042,” said Marokane.
“Eskom Green can now crowd in external capital and expertise, and enables private sector investors to be able to partner and invest with Eskom Green,” said Group Executive for Eskom Renewables, Rivoningo Mnisi.
He said that the structure of Eskom Green provides a solution and a level playing field to accelerate investment in renewable energy by strengthening investor confidence, thereby supporting the South African economy.
“This evolution reflects natural progression for Eskom. The fast-moving renewable energy market requires unprecedented agility and specialised partnership models that sit outside traditional utility structures,” said Mnisi.
He explained that by creating a dedicated, ring-fenced platform, Eskom is proactively optimising its approach into a dynamic, market-responsive model designed explicitly to maximise private-sector collaboration and accelerate the national grid’s transition.
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