As part of Eskom’s strategic objective to facilitate a competitive future energy industry, the company is transitioning its generation mix from predominantly coal to a blended portfolio with an increasing proportion of clean energy sources as we approach 2040.
In line with this strategy, Eskom has launched its first Renewable Energy Offtake Programme by issuing a Request for Proposal (RFP), inviting large power users to procure 291MW of Solar Photovoltaic (PV) capacity through long-term Power Purchase Agreements (PPAs) from Eskom-owned renewable energy sites.
“This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives,” said Eskom Group Chief Executive, Dan Marokane.
“We have seen strong interest in Eskom’s capabilities in green energy supply, which this programme demonstrates.
“Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach.”
The programme follows an Expression of Interest (EOI) process and extensive engagement with commercial and industrial customers, which showed strong demand for direct contracting through long-term PPAs. These agreements enable businesses to align with global sustainability standards, reduce carbon footprints, and green their supply chains, enhancing competitiveness. The RFP offers tailored solutions that meet operational requirements while contributing to South Africa’s decarbonisation goals.
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.
“This programme demonstrates Eskom’s commitment to innovation and building a cleaner, more resilient energy future. 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, through customer-centred solutions,” said Eskom Distribution Acting Group Executive, Agnes Mlambo.
“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.”
Eskom continues to develop a balanced energy mix, comprising 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.
Service providers are invited to review the RFP and submit proposals via the Eskom Tender Bulletin by 19 September 2025.
