South Africa’s state-owned power utility Eskom Holdings has secured the approvals needed to establish Eskom Green as a wholly owned subsidiary, paving the way for the new business to raise capital, partner with private investors and deliver up to 32 gigawatts (GW) of renewable energy capacity by 2040.
The move comes as South Africa continues efforts to strengthen its electricity system after years of chronic power shortages known locally as load shedding.
Although the frequency of load shedding has declined significantly following improvements in generation performance and the addition of new capacity, Eskom still faces the challenge of replacing its ageing coal-fired power stations while meeting growing electricity demand and advancing the country’s energy transition.
The approvals, granted under the Public Finance Management Act and subject to the conditions of the Eskom Debt Relief Act, will allow the utility to move ahead with the final steps to launch the renewable energy platform.
Eskom Green, which was unveiled last month, will house Eskom’s renewable energy business and operate as a ring-fenced subsidiary focused on developing utility-scale renewable energy projects for large industrial and commercial customers seeking to decarbonise their operations.
The company said the new structure would provide greater governance flexibility, improve access to public-private partnerships and enable it to attract external funding without materially increasing risks to Eskom Holdings’ balance sheet.
Group Chief Executive Dan Marokane said the launch forms part of Eskom’s broader strategy to accelerate renewable energy deployment while supporting South Africa’s energy transition.
“The 2025 Integrated Resource Plan states that 102GW of renewable energy should be delivered by 2042. 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,” Marokane said.
Eskom’s Group Executive for Renewables, Rivoningo Mnisi said the dedicated subsidiary would enable the utility to mobilise private capital more effectively.
“Eskom Green can now crowd in external capital and expertise and enables private sector investors to partner with Eskom Green,” Mnisi said, adding that the structure would strengthen investor confidence and accelerate renewable energy investment in South Africa.
Mnisi said the fast-growing renewable energy market required governance and partnership models that differ from those used by traditional utilities, making a dedicated business necessary to respond more quickly to market opportunities.
