• South Africa approves Eskom's revised unbundling plan, full split by 2030
  
  
• New entities include separate arms for generation, transmission, distribution, and renewables
  
  
• Reforms aim to open power market, boost investment, and end load-shedding
  

South African power utility Eskom said on Tuesday, Dec. 9, that Electricity and Energy Minister Kgosientsho Ramokgopa has approved its revised unbundling strategy, marking a new phase in the company’s restructuring.

The plan sets out a structure in which Eskom will be split into several specialised entities: the National Electricity Distribution Company of South Africa for distribution, the Generation Company for electricity generation, the National Transmission Company South Africa for transmission, and Eskom Green, a renewables-focused subsidiary.

A fully independent Transmission System Operator (TSO) will also be established outside Eskom. The full unbundling process is expected to be completed by 2030.

Eskom said the reorganisation is intended to support the gradual opening of the electricity market. National demand is forecast to grow by 1.5% in the short term and 2% in the long term, requiring additional private and public investment to expand generating capacity from 66 GW in 2024 to 107 GW by 2034.

“We recognise the urgency of reform for the benefit of consumers. [...] This approach strengthens the level playing field for market participation and provides greater certainty for investors bringing much-needed capacity into the system,” Eskom CEO Dan Marokane said.

The reforms form part of the implementation of the Electricity Regulation Amendment Act 38 of 2024, which came into force on Jan. 1, 2025, after being enacted in August 2024. The act provides for an open multi-market system combining competitive, bilateral and regulated transactions, and requires the establishment of a fully independent TSO within five years. The shift is expected to boost competition and help attract investment in new generation, Marokane said.

Eskom is also working to stabilise the grid through its Generation Recovery Plan, launched in 2023. In an October 2025 update, the utility said unplanned breakdowns had fallen by 1,201 MW from a year earlier, and plant availability had remained above 98% since the start of the fiscal year. South Africa has gone 161 consecutive days without load-shedding and recorded only 26 hours of power cuts between April 1 and Oct. 23.

Eskom said the improved performance, together with the restructuring effort, is laying the groundwork for a more stable and competitive electricity system able to absorb new capacity and support Africa’s largest industrial economy.

Abdoullah Diop