Eskom, South Africa’s state-owned power utility, says it is targeting as much as 32GW in renewable energy generation by 2040 as it seeks to diversify from its coal dependence.
This was disclosed by Eskom executives on Tuesday during the launch of Eskom Green, an initiative aimed at scaling solar, wind, and hydro power, while placing a strong additional focus on battery and pumped storage.
The strategy is to scale solar, wind, hydro and storage, aiming to ramp up to 21GW by 2035 and 32GW by 2040.
“The objective is very simple: to make renewables viable for South Africa at scale,” Rivoningo Mnisi, group executive for renewables and the man now in charge of Eskom Green, said.
Coal stays, but solar, wind, nuclear and dydro expand
South Africa, a country of over 63 million people, heavily relies on coal for its electricity generation, accounting for more than 85 percent of power output.
Beyond coal, gas-fired power stations contribute around 2,426MW through four quick-reaction turbine plants, while nuclear energy contributes about 1,934MW from the Koeberg Nuclear Power Station, the only operational nuclear power facility in Africa.
But the utility is looking to scale up its renewable energy further, while recognizing the foundational role its coal infrastructure still plays.
In late June, TechMedia Africa reported that Eskom has begun construction of a $73 million (R1.2 billion) 75MW solar power plant at its Lethabo power station in the Free State, marking the company’s first utility-scale renewable energy project to be built on the footprint of an existing coal-fired station. The plant, which is expected to generate 147GWh of electricity annually, could help power about 60,000 households.
But solar is not the only source of energy that South Africa is turning toward.
On May 20, TechMedia Africa equally reported that Eskom is in early talks with the World Bank over funding for a proposed 5.2GW (5,200MW) nuclear power expansion. The proposed expansion would include 4.8GW from conventional nuclear reactors and an additional 400MW from small modular reactors (SMRs).
Despite the global emission concerns of coal, Electricity and Energy Minister Kgosientsho Ramokgopa said that coal remains, adding that relying on it is “a policy of the South African government.”
“We have just completed Medupi and Kusile – coal will remain foundational. We do not have a coal problem, we have an emissions problem, and we are addressing that problem,” he added.
Concern Over Eskom Dominance in South Africa’s Renewable Energy Market
Because Eskom accounts for roughly 90 percent of South Africa’s electricity and generates more or less 30 percent of the total electricity used across the African continent, the launch of Eskom Green immediately sparked industry fears of state monopoly crowding out independent generation.
However, the utility’s leadership used the launch event to confront these concerns directly, insisting that the new unit will work alongside private developers rather than compete with them.
Board chairman Mteto Nyati addressed the industry pushback head-on:
“We are aware of concerns that Eskom Green could crowd out private renewables. We respect that perspective, but we see it differently,” Nyati stated. “Eskom is not entering this space to replace others. Given our scale and responsibility for the national grid, we believe we bring capabilities that complement rather than compete with the market.”
Nyati emphasized that the board’s true intent is “to de-risk the energy transition, to allow all of the power producers to succeed together,” highlighting that existing agreements with independent power producers (IPPs) already exceed 2GW.
Group executive Rivoningo Mnisi backed this collaborative approach, clarifying that the staggering scale of the country’s energy transition requires an open market.
“No single organization can deliver the needs alone,” Mnisi stressed. “Eskom Green is designed as a partnership platform. To deliver at scale we need to work with the market, partnering with IPPs and financiers to deliver projects that are efficiently structured, well governed and executed at the highest standard.”
Minister Ramokgopa also invited the private sector to step up, framing the initiative as a collective national effort rather than a state monopoly.
“Eskom has said what they are doing. So IPPs are invited to come forward with their own plans to contribute,” the Minister said. “This is not a competition, but a chance for collaboration.”