- South Africa’s state owned energy utility, Eskom, wants to sell 291MW of solar capacity produced at coal fired power stations, to private off-takers.
Eskom Distribution is advancing its customer-centric product offering by introducing a Renewable Energy Power Purchase Agreement (PPA) solution designed to address the evolving needs of its customers. This product offering is a direct response to growing customer demand for accessible and environmentally sustainable electricity solutions that also enhance operational resilience and support broader decarbonisation objectives.
The initiative draws on insights from an Expression of Interest (EOI) process conducted in January 2025 and multiple direct engagements with commercial and industrial customers. The feedback confirmed a preference for direct contracting with Eskom for renewable energy supply, especially through long-term PPAs that enable alignment with global sustainability standards, reduction of carbon footprints, and greening of supply chains to improve international competitiveness.
The tender documents outline the comprehensive scope, roles, responsibilities, and contractual framework applicable to respondents participating in the Request for Proposals (RFP) for the offtake of 291 MW of renewable energy capacity.
The projects, mainly solar PV, are being developed adjacent to Eskom power station sites and are scheduled for commercial operation no later than December 2027.
The renewable energy supplied under this PPA will be delivered on a self-dispatch basis, meaning customers will receive energy as it is generated by the solar PV facilities. There will be no centralised dispatch control or real-time scheduling from Eskom. This model empowers customers to integrate renewable energy into their operational energy strategies, with the understanding that supply availability will depend on solar irradiation profiles and weather conditions. Buyers will be responsible for balancing their remaining demand requirements through other sources or Eskom supply channels.
Key features of the programme
- Minimum contracted capacity per customer: 10MW
- Contract Tenure/Term: 5 to 25 years
- Offtake Mechanism: Power Purchase Agreement (as per PPA contracting principles)
- Commercial operating date (COD): December 2027
Link to the RFP documents HERE
Eskom plans to add 5GW renewable energy capacity to its generation mix by 2030
Mr Rivoningo Mnisi, Eskom’s Group Executive for Renewables has confirmed that 5GW of repowering projects are currently under development at six coal fired power with construction set to begin on 2GW by 2026. Most of the projects are being developed under a public-private partnership model and will be implemented in more than one phase. Mnisi explained that funding will be frontloaded for alternative power generation and repurposing citing lessons learnt from Komatipoort. Read more
Eskom’s repowering plan leading up to 2030. Author provided
Author: Bryan Groenendaal
