• Eskom opens bidding for 291 MW of solar power under long-term PPAs.
• First renewable plants expected online by December 2027.
• Coal still dominant at 82% of capacity, but shift toward 32 GW clean energy by 2040.

Eskom announced on August 19 the launch of its first Renewable Energy Offtake Program, marking a strategic step in reshaping South Africa’s power mix. The tender invites large consumers to sign long-term power purchase agreements (PPAs) for 291 MW of solar photovoltaic capacity from Eskom-owned sites.

The program follows a call for expressions of interest that showed strong demand from commercial and industrial players for direct supply solutions. The PPAs will run between 5 and 25 years, with first commissioning scheduled for December 2027. Eskom said the scheme will help client companies cut their carbon footprint while boosting competitiveness.

“This program demonstrates Eskom’s commitment to innovation and building a cleaner, more resilient energy future. By offering customized renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply, through customer-centered solutions,” said Eskom Distribution Acting Group Executive, Agnes Mlambo.

While the initiative highlights Eskom’s strategic pivot, coal dependence remains central. On July 6, 2025, the company restarted Unit 4 of the Medupi power station, adding 800 MW to the grid, only months after restarting Kusile. These moves helped South Africa achieve 300 days without load shedding in early 2025, underscoring coal’s role as the backbone of the national power system. According to the International Energy Agency, coal still made up 82% of installed capacity in 2023.

Balancing the reinforcement of coal-fired stations with the rollout of renewable offtake schemes, South Africa’s energy transition remains gradual—driven by immediate supply security needs but aiming for 32 GW of clean energy by 2040.