Dr Kgosientsho Ramokgopa, Minister of Energy and Electricity, has given green light for Eskom to further its unbundling strategy.
Eskom Green, is one of the newest entities to be formed, a new subsidiary to house Eskom’s renewable energy business.
Other newbies to be formed are the National Electricity Distribution Company of South Africa (NEDCSA) and GenerationCo (GxCo).
The National Transmission Company South Africa (NTCSA), was legally separated in July 2024.
Another new and independent Transmission System Operator (TSO) will be established outside of Eskom.
Under the revised unbundling strategy, transmission assets remain owned by the National Transmission Company South Africa (NTCSA), which operates as a subsidiary of Eskom Holdings and will continue to expand and maintain the national grid.
Dan Marokane, Eskom Group Chief Executive, said about this milestone, “today’s announcement by the Minister represents a significant step forward in establishing a competitive electricity market in South Africa, supported by the rule of law while maintaining strong public oversight of the power system and its assets. This marks the next stage of the groundwork to enable more affordable and competitive pricing by driving competition, efficiency, and diversity of supply, ultimately stabilising South Africa’s electricity system.”
Marokane also said growing the electricity marketplace requires expanding supply.
Demand is projected to increase by 1.5% in the short term and 2% in the long term.
In addition, renewable energy, is expected to increase from 66GW in 2024 to 107GW by 2034.