Eskom launches new solar drive in South Africa

The programme is a request for proposal (RFP) inviting large power users to procure 291MW of solar power capacity through long-term power purchase agreements (PPAs) with Eskom-owned renewable energy sites.

The utility said it launched the programme after commercial and industrial users expressed interest in direct contracting through long-term PPAs.

It added that this is a big step in pursuing its strategy of transitioning its generation mix from predominantly coal to a blended portfolio comprising of an increasing proporion of clean energy sources.

By 2040, Eskom’s energy mix should be mde up of coal, nuclear, gas, renewables, and energy storage solutions such as Battery Energy Storage Systems and pumped hydro.

“A dedicated renewable energy business will accelerate deployment, targeting 2GW of construction-ready projects by 2026 and scaling up to 32GW, including Green Hydrogen, by 2040,” it said.

Through the new offtake programme, successful bidders will enter PPAs ranging from 5 to 25 years, with renewable energy delivered in phases from multiple Eskom projects.

The earliest project is expected to reach commercial operation by December 2027.

“These agreements enable businesses to align with global sustainability standards, reduce carbon footprints, and green their supply chains, enhancing competitiveness,” the utility said.

“The RFP offers tailored solutions that meet operational requirements while contributing to South Africa’s decarbonisation goals.”

Eskom CEO Dan Marokane said this is the next step in getting additional renewable energy onto the Eskom grid.

While the utility is still focused on ending load shedding through stabilising available capacity and maintaining its current assets, it also needs to pivot to a more sustainable and competitive company.

Controversially and somewhat ironically, while Eskom talks the talk of becoming a more competitive company, it is also actively pursuing legal action to block competition in its field.

Eskom launched legal challenges against the national energy regulator, Nersa, after it granted five trading licences to entities that would bring much-needed competition to the market.

The national utility launched the challenges on the grounds that the licences infringe on its licence rights, and go against Nersa’s conditions, disallowing more than one licensee to provide electricity in the same area.

However, energy experts and business leaders have called Eskom out for litigating to protect its monopoly, with the added result of undermining the national energy reform programme that is supposed to help the country achieve energy security.

Even the minister of electricity, Kgosientsho Ramokgopa, has questioned the legal action and called for Eskom to pull out.

Regardless, Eskom said that this new offtake programme demonstrates its commitment to change.

“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,” it said.

“Engaging with the private sector in this structured manner gives impetus to Eskom’s efforts to create a sustainable pathway for clean power integration into the grid.”

Issued on BusinessTech | https://businesstech.co.za/news/energy/835378/eskom-launches-new-solar-drive-in-south-africa/