Eskom has issued a call for proposals from experienced companies to establish renewable energy businesses to expedite the deployment of renewable energy solutions.
According to the statement released on Tuesday, Eskom will evaluate applicants based on several criteria, including a demonstrated history of successfully establishing a renewable energy company and the number of public-private partnerships (PPPs) and special purpose vehicles (SPVs) that have created tangible projects.
The evaluation will also look at expertise in the independent power producer (IPP) business model and financial structuring, technical capabilities, and knowledge of the sector.
This evaluation process aims to select firms that can effectively contribute to Eskom's renewable energy initiatives.
The State utility announced that the new subsidiary aims to operate independently from the main Eskom entity, enabling better governance, improved market competitiveness, and enhanced PPPs.
"Agility and efficiency are at the heart of preparing for a competitive marketplace and ensuring we serve our current and future customers with the electricity supply solutions they require," said Eskom's Group Chief Executive, Dan Marokane.
Marokane stated that Eskom is now one year into its turnaround strategy.
This strategy aims to not only end load shedding but also transform the utility into a sustainable and competitive company while ensuring a secure supply of electricity.
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"To make a meaningful impact in the renewables space, we recognised that the most cost-effective way to do this is to bring in at the start some new skills, thinking and expertise to set our Eskom teams up for success in the business, so through knowledge transfer we can execute strategic initiatives in a competitive market faster and more efficiently. The creation of our renewable energy business also forms part of Eskom's focus both in this country and internationally to identify the latest developments and strategies to reduce carbon emissions and other air pollutants," he explained.
Eskom said it was committed to maintaining a balanced and diversified energy mix.
This includes utilising existing coal and nuclear power, introducing gas for baseload power, and incorporating renewable energy sources.
In addition, Eskom aims to implement energy storage systems, such as battery energy storage systems (BESS) and pumped hydro, to ensure overall security of supply and sustainably meet the growing electricity demand in South Africa.
The utility said it has an executable initial pipeline of at least 2GW of clean energy projects by 2026 and has developed a pipeline of more than 20GW of clean energy projects to diversify its energy mix.
Eskom will update the marketplace on the progress of the development of its renewable energy business throughout 2025.
The opportunity to respond to the tender closes on 7 May 2025 at 10 am, and application forms can be found on the Eskom website. The support will be required over 12 months.
