Eskom Green, was launched on Tuesday, at the Inanda Club in Sandton.
The entity is a renewable energy business designed to accelerate the development of utility-scale projects.
Rivoningo Mnisi, Group Executive for Eskom Renewables, said its design follows global benchmarking research on over 20 utilities.
“The insights indicate that the development of renewable energy projects requires agile decision-making, access to diverse sources of capital, partnership-based delivery models, and bankable project structures.”
It is part of Eskom Holdings, but is expected to be separated from Eskom to become a wholly owned subsidiary with an independent board, subject to the necessary governance, regulatory and shareholder approvals.
The foundation phase of the offering will target large industrial demand in mining and manufacturing through Section 34 IRP allocations and direct bilateral Power Purchase Agreements (PPAs) to provide solutions to decarbonise.
Eskom Green’s entry into the market is positioned to close the generation capacity gap identified in the IRP 2025.
The company is also expected to serve the Eskom Distribution market, leading customer network through the eDX Edge offering, as well as the South African Wholesale Electricity Market (SAWEM) as it develops, the Southern African Power Pool (SAPP) and municipalities.
The IRP 2025 estimates that for every 10GW of renewables, 6GW of dispatchable power is required (60%).
So in line with the IRP 2025, Eskom Green’s will have to deliver overall renewable build targets of 5.6GW by 2030, 21GW by 2035, and 32GW by 2040.
Picture: Rivoningo Mnisi, Group Executive for Eskom Renewables.