- Eskom Green cleared to operate as a wholly owned subsidiary focused on renewable energy.
- New structure enables private sector funding and partnerships at scale.
- Utility targets up to 32 GW of renewable capacity by 2040.
Eskom Holdings has secured the required approvals under Section 54(2) of the Public Finance Management Act, together with conditions linked to the Eskom Debt Relief Act, to formally establish Eskom Green as a dedicated renewable energy subsidiary.
The approvals mark a significant milestone in Eskom’s restructuring programme and allow the utility to proceed with final implementation steps. Eskom Green will house the group’s renewable energy activities and serve as a vehicle to raise funding and deploy projects at scale.
As a wholly owned subsidiary, Eskom Green will operate under governance aligned with the Public Finance Management Act, the Companies Act and King Code principles. The structure is designed to strengthen accountability while improving market responsiveness and access to public and private partnerships.
Eskom Green is positioned as a utility scale renewable energy business aimed at delivering cost competitive projects for large power users seeking to decarbonise. The platform will complement other generation sources including cleaner coal, gas and nuclear as part of a balanced energy mix.
The company plans to offer tailored renewable solutions focused on reliability, sustainability and pricing competitiveness. As part of its rollout, Eskom Green will initiate a market process to appoint strategic partners to support project delivery and customer solutions.
Related news: JinkoSolar launches mass production of Tiger Neo 3 as global pre-orders exceed 15GW
Eskom Group Chief Executive Dan Marokane said the development supports national goals to diversify renewable energy supply and enable industrial customers to remain competitive. He noted that South Africa’s 2025 Integrated Resource Plan targets 102 GW of renewable energy by 2042, with Eskom Green aiming to contribute up to 32 GW by 2040.
Marokane added that the initiative still leaves more than two thirds of the opportunity open to private sector players, reinforcing the role of independent investment in the market.
Eskom Renewables Executive Rivoningo Mnisi said the new structure allows Eskom to attract external capital and expertise while offering competitive renewable energy solutions. He added that a dedicated platform improves investor confidence and creates a level playing field for partnerships.
The Eskom Green model is based on global benchmarking across more than 20 utilities, reflecting a shift toward agile decision making, diversified funding sources and partnership driven delivery. The subsidiary will operate as a commercially viable platform using project financed special purpose vehicles to mobilise capital.
By ring fencing renewable investments, Eskom aims to improve transparency, reduce cost of capital and limit pressure on its balance sheet. Financial exposure will be largely confined to equity contributions at project level, with risks shared among partners and limited recourse to the broader group or the national fiscus.
The model is also expected to support South Africa’s just energy transition. Eskom Green will play a role in repurposing coal fired power station sites, helping to sustain economic activity, support workforce transitions and stimulate new clean energy based local economies.
Projects developed under the platform are expected to include localisation, supplier development and community benefit elements while maintaining commercial discipline. The initiative is aligned with national priorities including energy security, emissions reduction, job creation and inclusive economic growth.
Eskom confirmed that Eskom Green will not take on regulatory or policy roles and will operate within South Africa’s existing energy framework, focusing solely on the development, financing and operation of renewable energy projects.
Author: Bryan Groenendaal
