Power utility Eskom has issued a tender invitation for firms with a proven track record in establishing renewable energy businesses to assist it in accelerating the deployment of renewable energy solutions.
This, as South African businesses and households increasingly turn to renewable energy sources as they look to secure their energy supply, reduce costs and contribute to environmental sustainability.
Organisations and households see renewable energy as a reliable, independent power source to reduce their dependence on the grid and avoid the inconvenience of load-shedding.
A report by non-profit organisation GreenCape says South Africa’s private renewable energy developments are expected to increase by 6GW for solar photovoltaic (PV) and 3.5GW for wind power by 2030.
The investment value of these technologies is R72 billion for solar PV and R60 billion for wind power projects by 2030. The total investment value for this opportunity is R132 billion by 2030, or R26.4 billion per year.
In a statement, Eskom says it will evaluate applicants on criteria that includes the requirement for a proven track record in establishing a renewable energy company, the number of public-private partnerships (PPPs) and special purpose vehicles created that have delivered projects, independent power producer business model and financial structuring expertise, as well as technical capability and sector knowledge.
The opportunity to respond to the tender closes on 7 May at 10:00 and it can be found on the Eskom website. Support will be required for 12 months, says the power utility.
It notes the objective for the new subsidiary will be to operate independently of the main Eskom entity, to allow for greater governance agility, competitive market positioning and enhanced PPPs.
“Agility and efficiency are at the heart of preparing for a competitive marketplace and ensuring we serve our current and future customers with the electricity supply solutions they require,” says Dan Marokane, Eskom group chief executive.
“We are now a year into our turnaround strategy and we are not just focused on ending load-shedding. At the same time, we are pivoting Eskom into a sustainable and competitive company while ensuring security of supply.
“To make a meaningful impact in the renewables space, we recognised that the most cost-effective way to do this is to bring in at the start some new skills, thinking and expertise to set our Eskom teams up for success in the business; so, through knowledge transfer, we can execute strategic initiatives in a competitive market faster and more efficiently.
“The creation of our renewable energy business also forms part of Eskom’s focus both in this country and internationally to identify the latest developments and strategies to reduce carbon emissions and other air pollutants,” he adds.
Eskom notes it remains focused on a balanced and diversified energy mix based on existing coal and nuclear, and introducing gas for baseload power, as well as renewables, energy storage systems, including battery energy storage systems and pumped hydro, to achieve overall security of supply and to meet South Africa’s growing electricity demand in a sustainable manner.
According to the utility, it has an executable initial pipeline of at least 2GW of clean energy projects by 2026 and has developed a pipeline of more than 20GW of clean energy projects to diversify its energy mix.
Eskom will update the marketplace on the progress of the development of its renewable energy business throughout 2025, it concludes.
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