PVTIME – South Africa’s Eskom, the country’s largest power utility, has launched a key renewable energy procurement programme. It will offer 291 MW of solar power to large industrial and commercial users via long-term power purchase agreements (PPAs).
Successful bidders will sign PPAs with Eskom ranging from five to 25 years, with power supplied in phases from multiple Eskom-owned projects. The first project is set to enter commercial operation in December 2027, and applications close on 19 September. Several companies have already expressed interest in participating.
Eskom Group Chief Executive Officer Dan Marokane explained that the programme emerged from earlier market consultations, during which industrial and commercial users demonstrated a clear demand for direct access to green energy. He described the initiative as part of Eskom’s strategy to “integrate more renewable energy into the grid” and a vital step in the company’s efforts to “return to profitability and become a sustainably competitive business”. He added that the customer-centric model aims to secure energy supply while supporting South Africa’s carbon reduction targets.
The tender aligns with South Africa’s accelerating clean energy transition. The country added 1.1 GW of new solar capacity in 2024, building on a record high in 2023. Under government plans, South Africa aims to add at least 3 GW of renewable energy annually, rising to 5 GW by 2030. Eskom’s PPA scheme is seen as critical to this strategy, attracting private capital to utility projects and accelerating the grid’s shift towards a low-carbon future.
Energy analysts note that the long-term PPAs provide stable revenue forecasts for renewable projects, thereby reducing risks for private investors. The phased supply model also eases pressure on the grid and supports South Africa’s goal of phasing out coal power and reaching carbon neutrality by 2050.
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