
Eskom introduces its first Renewable Energy Offtake Programme, enabling businesses to secure clean power through long-term PPAs. (Image source: Eskom)
Eskom has launched its first Renewable Energy Offtake Programme, marking a key milestone in its strategy to build a 'competitive future energy industry' and increase the share of clean power in South Africa’s national grid
The utility said it is shifting its generation mix from being largely coal-based to a more balanced portfolio, with clean energy expected to take up a growing share by 2040.
Through a newly issued Request for Proposal (RFP), Eskom is inviting large power users to procure 291MW of solar photovoltaic (PV) capacity under long-term Power Purchase Agreements (PPAs) from Eskom-owned renewable projects.
This initiative follows a successful Expression of Interest (EOI) and extensive discussions with commercial and industrial customers, which confirmed strong demand for long-term PPAs. These contracts allow businesses to meet international sustainability targets, cut carbon emissions, and green their supply chains, boosting competitiveness.
The RFP is designed to provide tailored solutions that meet customer needs while supporting South Africa’s wider decarbonisation objectives. Winning bidders will enter PPAs ranging from 5 to 25 years, with renewable supply delivered in stages from several Eskom projects. The first project is expected to be commercially operational by December 2027.
Eskom group CEO, Dan Marokane, described the programme as a critical part of the company’s transformation:
"This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives.
"We have seen strong interest in Eskom's capabilities in green energy supply, which this programme demonstrates. Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach," remarked Marokane.
Agnes Mlambo, Eskom distribution acting group executive, said the initiative reflected Eskom’s drive to create a resilient energy future.
"This programme demonstrates Eskom's commitment to innovation and building a cleaner, more resilient energy future. By offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply, through customer-centred solutions," continued Mlambo.
She noted that structured collaboration with the private sector would further accelerate Eskom’s clean energy integration into the grid.
The company added that it is pursuing a balanced energy mix, combining coal, nuclear, gas, renewables, and energy storage technologies such as Battery Energy Storage Systems and pumped hydro. Eskom also confirmed that a dedicated renewable energy business will fast-track green projects, with 2GW of construction-ready capacity targeted by 2026 and scaling up to 32GW, including Green Hydrogen developments, by 2040.