Eskom Launches Renewable Energy Offtake Programme with 291MW Solar PV Capacity

19 August 2025

Eskom Opens Bidding for 291MW of Solar PV Through Long-Term Contracts

Eskom has launched its first-ever Renewable Energy Offtake Programme, inviting large power users to procure 291MW of Solar Photovoltaic (PV) capacity through long-term Power Purchase Agreements (PPAs). The programme marks a significant step in Eskom's stated strategy to transition from coal dependency toward a more diversified energy mix.

The utility issued a Request for Proposal (RFP) on Tuesday, following what it describes as extensive engagement with commercial and industrial customers that revealed substantial interest in direct renewable energy contracting.

Programme Details and Timeline

According to Eskom, successful bidders will enter into Power Purchase Agreements ranging from 5 to 25 years. These agreements will allow businesses to source renewable energy directly from Eskom-owned sites, with the earliest project expected to reach commercial operation by December 2027.

The programme follows an earlier Expression of Interest (EOI) process that gauged market appetite for such arrangements. Eskom claims the initiative will help businesses align with global sustainability standards, reduce carbon footprints, and green their supply chains.

Strategic Shift Toward Clean Energy

Dan Marokane, Eskom Group Chief Executive, framed the programme as part of the utility's broader turnaround strategy: "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."

Marokane added that just over a year into the turnaround plan, Eskom is "not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply."

Agnes Mlambo, Eskom Distribution Acting Group Executive, described the programme as demonstrating "Eskom's commitment to innovation and building a cleaner, more resilient energy future."

Outlook: Eskom's Renewable Energy Roadmap

Eskom states it is developing what it calls a "balanced energy mix" comprising coal, nuclear, gas, renewables, and energy storage solutions including Battery Energy Storage Systems (BESS) and pumped hydro.

The utility plans to establish a dedicated renewable energy business to accelerate deployment, with targets of 2GW of construction-ready projects by 2026, scaling up to 32GW (including Green Hydrogen) by 2040. This represents a substantial shift for the traditionally coal-dependent power producer.

While this programme's 291MW capacity is relatively modest compared to South Africa's overall energy needs, it signals Eskom's increasing alignment with global trends toward corporate renewable energy procurement. The commercial success of this initial offering will likely influence the pace and scale of future similar initiatives.

Service providers interested in the RFP must submit proposals via the Eskom Tender Bulletin by 19 September 2025.

Key Terms Explained

• Solar Photovoltaic (PV): Technology that converts sunlight directly into electricity using panels typically installed on open land or rooftops. 291MW could power approximately 189,000 South African homes.
• Power Purchase Agreement (PPA): A long-term contract between an electricity generator and a customer, specifying the terms of electricity sales including price, duration, and delivery points.
• Request for Proposal (RFP): A formal bidding document inviting suppliers to submit commercial offers for specific goods or services.
• Battery Energy Storage Systems (BESS): Large-scale batteries that store excess electricity when generation exceeds demand and release it when needed, helping balance supply and demand on the grid.
• Green Hydrogen: Hydrogen produced using renewable electricity to split water molecules, creating a clean fuel that can be stored, transported, and used to generate electricity without carbon emissions.