Johannesburg – Eskom, South Africa's state-owned power utility, has officially unveiled its Renewable Energy Offtake Program, marking a significant step in the country's energy transition. The initiative will enable large-scale consumers to purchase clean electricity directly from Eskom-owned renewable projects through long-term power purchase agreements (PPAs).

Program Details & First Solar Tender

The program's launch follows a successful Expression of Interest (EOI) phase, which revealed strong demand from industrial and commercial users seeking direct access to green power. Eskom has now opened its first Request for Proposals (RFP) for 291 MW of solar capacity, with bidding open until September 19, 2024.

·Contract Terms: PPAs will range from 5 to 25 years, with power delivery phased across multiple Eskom projects.

·Timeline:The earliest project is expected to achieve commercial operation by December 2027.

Eskom’s Strategic Shift Towards Sustainability

Eskom Group Chief Executive Dan Marokane emphasized that the offtake program aligns with the utility’s broader turnaround strategy, which aims to:

·End loadshedding through diversified energy sources

·Transform Eskom into a sustainable, competitive utility

·Enhance energy security with a customer-centric approach

"The strong interest in Eskom’s green energy capabilities validates this program’s potential,"Marokane stated. "Beyond resolving the energy crisis, we are committed to building a cleaner, more resilient power sector."

South Africa’s Renewable Energy Momentum

South Africa added 1.1 GW of solar capacity in 2024, building on a record year for solar installations in 2023. The country aims to deploy:

·At least 3 GW of new renewables annually

·Scaling up to 5 GW per year by 2030

This offtake program is expected to accelerate private-sector participation in meeting these targets while reducing reliance on fossil fuels. 

Looking Ahead

Eskom’s initiative could serve as a model for other utilities in emerging markets, balancing grid stability, affordability, and decarbonization. Industry stakeholders will be watching closely as the first PPAs take shape later this year.