South Africa’s state-owned electricity company Eskom launched a new business unit on Tuesday (9) dedicated to developing utility-scale renewable energy projects. The unit is part of the company’s plans to reach up to 32 gigawatts of installed renewable energy capacity by 2040.
A former state monopoly, Eskom continues to supply most of the electricity for Africa’s largest economy through its fleet of power plants, which are predominantly coal-fired.
According to Reuters, the company had already announced its intention to shift its operations toward predominantly clean energy sources by 2040.
According to a company statement, Eskom Green will initially operate within Eskom Holdings before being transformed into a wholly owned subsidiary with an independent board of directors.
The new unit will target energy-intensive sectors, such as mining and manufacturing, offering renewable energy supply contracts backed by storage systems.
The goal is to provide approximately 6 gigawatts of carbon-free electricity by 2030, drawing on a portfolio of renewable energy and storage projects currently under development.
Eskom also reported that funding for the initial phases is already included in its approved capital expenditure program and will be secured through the company’s own financial resources listed on its balance sheet.
