Eskom Holdings SOC Ltd has announced its plans to establish a separate renewable energy business as part of its broader strategy to transition into a sustainable and competitive energy utility. The state-owned power utility has issued an Invitation to Tender (ITT) to firms with a strong track record in building renewable energy companies, aiming to fast-track the deployment of green energy solutions across South Africa.
The tender, which closes on 07 May 2025 at 10:00 SAST, invites applications from companies that can demonstrate success in forming renewable ventures, delivering Public-Private Partnership (PPP) projects, and managing Special Purpose Vehicles (SPVs). Applicants are also expected to showcase expertise in Independent Power Producer (IPP) business models, financial structuring, and technical capability.
According to Eskom, the new subsidiary will function independently from the main entity, allowing for enhanced governance agility, market competitiveness, and greater involvement of PPPs.
Group Chief Executive Dan Marokane emphasized the strategic shift:
“Agility and efficiency are essential in preparing for a competitive market. While we continue addressing load shedding, our long-term focus is to transform Eskom into a sustainable and competitive entity,” he said.
He further noted the importance of injecting new skills and perspectives early on to maximize the business’s success in a rapidly evolving renewable energy sector.
“By transferring knowledge and leveraging strategic expertise, we can execute projects faster and more efficiently. Our renewable energy business will also engage on a global level to identify new technologies for cutting carbon emissions and other pollutants,” Marokane added.
Eskom highlighted its commitment to a diversified energy mix, incorporating coal, nuclear, gas for baseload power, and renewables such as pumped hydro and Battery Energy Storage Systems (BESS). The utility confirmed it already has an executable clean energy pipeline of at least 2GW for completion by 2026, and is developing an additional 20GW pipeline of projects to support energy security and meet rising electricity demand sustainably.
The utility plans to provide regular updates on the progress of the new Renewable Energy subsidiary throughout 2025.
