Eskom has announced the launch of Eskom Green, a dedicated renewable energy business aimed at accelerating the development of utility-scale clean energy projects and expanding its presence in the commercial and industrial (C&I) power market. The initiative forms part of Eskom’s broader restructuring and unbundling strategy that began in 2023.
According to Eskom, the new business unit has been established to enable a more agile and commercially focused approach to renewable energy development. The utility said the structure was informed by global benchmarking research involving more than 20 international utilities, which highlighted the need for flexible decision-making processes, diverse financing options, partnership-driven delivery models, and bankable project structures for successful renewable energy deployment.
“Eskom Green has been designed in response to global benchmarking research on over 20 utilities,” the company said in a statement. “The insights indicate that the development of renewable energy projects requires agile decision-making, access to diverse sources of capital, partnership-based delivery models, and bankable project structures.”
The utility explained that Eskom Green will initially operate within Eskom but will eventually be separated into a wholly owned subsidiary under Eskom Holdings. The new entity will have its own independent board, allowing it to pursue renewable energy opportunities with greater operational flexibility while remaining aligned with Eskom’s long-term strategy.
The launch comes at a time when Eskom is showing signs of operational recovery. The utility recently achieved a major milestone by recording 365 consecutive days without loadshedding, marking the first such achievement since 2018. Eskom attributed the improvement to enhanced power plant performance, stronger operational discipline, and increased system reliability. Additional factors, including lower electricity demand and rapid growth in rooftop solar installations across South Africa, have also contributed to improved grid stability.
Despite these operational gains, Eskom continues to face significant financial challenges. The company remains heavily dependent on coal-fired power generation and diesel-powered peaking plants, both of which contribute to high operating costs. Although diesel expenditure has declined compared to previous years, spending remains substantial.
Meanwhile, South Africa’s electricity sector is undergoing significant reforms, including plans to establish a competitive wholesale electricity market. Industry analysts believe these changes could reshape Eskom’s future role within the power sector. However, concerns remain that policies designed to protect legacy coal assets could discourage private investment in renewable energy and reduce the efficiency gains expected from market liberalization.
The establishment of Eskom Green signals the utility’s commitment to participating more actively in South Africa’s energy transition. By creating a dedicated renewable energy platform, Eskom aims to attract investment, accelerate clean energy deployment, and strengthen its position in an increasingly competitive and decarbonized electricity market.
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