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 capacity through long-term power purchase agreements (PPAs) from the power utility’s renewable energy sites.
In a statement today, the state-owned company says as part of its strategic objective to facilitate a competitive future energy industry, it is transitioning its generation mix from predominantly coal, to a blended portfolio with an increasing proportion of clean energy sources as 2040 approaches.
According to the power utility, the offtake programme follows an expression of interest process and extensive engagement with commercial and industrial customers, which showed strong demand for direct contracting through long-term PPAs.
It explains that 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, says Eskom.
Successful bidders will enter PPAs ranging from five 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, the company notes.
“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,” says 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 load-shedding but are also pivoting Eskom into a sustainable and competitive company, while ensuring security of supply through a customer-centric approach.”
“This programme demonstrates Eskom’s commitment to innovation and building a cleaner, more resilient energy future,” says Eskom Distribution acting group executive Agnes Mlambo.
“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.
“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 says it 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.
It points out that 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 can review the RFP and submit proposals via the Eskom Tender Bulletin by 19 September.
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