South Africa’s state owned power company, Eskom, has invited private businesses to buy renewable electricity directly from its energy subsidiary.
The utility said it has launched a Renewable Energy Off take Programme, allowing commercial and industrial users to secure 291MW of Solar Photovoltaic capacity under long term Power Purchase Agreements (PPAs).
This was disclosed in a statement by Eskom on Tuesday.
The programme follows months of consultation with private companies after an Expression of Interest showed strong demand for direct energy contracts.
Long term deals for solar supply
According to Eskom, successful bidders will sign contracts running between 5 and 25 years.
Power will be supplied in phases, with the first project expected to begin operations in December 2027.
Dan Marokane, Eskom’s Group Chief Executive, said the initiative was part of the company’s turnaround plan.
“This is the next step in executing our strategy to integrate renewable power into the grid. Just over a year into our turnaround, we are not only focused on ending load shedding but are also building a sustainable and competitive company,” he said.
Agnes Mlambo, Eskom’s Acting Distribution Executive, noted that the off take arrangement would help businesses shift to low carbon operations.
“By offering tailored renewable energy supply, we are enabling customers to align with global sustainability goals while ensuring secure and competitive supply,” she said.
The company explained that demand for cleaner electricity has increased as South African industries face pressure to reduce emissions and green their supply chains.
Direct offtake contracts are also expected to improve reliability for businesses, many of which have been affected by years of load shedding.
Part of wider energy transition
Moreover, Eskom said the Renewable Energy Off take Programme fits into its broader plan to reduce dependence on coal.
The utility continues to run coal stations but is also developing nuclear, gas, renewable and energy storage projects.
A dedicated renewable business unit is being set up to accelerate delivery.
The company aims to reach 2GW of construction ready projects by 2026 and scale this to 32GW, including Green Hydrogen, by 2040.
Marokane added that working with private customers was essential for Eskom’s future.
“We have seen strong interest in Eskom’s green energy capabilities, and this programme shows our commitment to building a cleaner and more resilient energy system,” he stated.
South Africa has long relied on coal, which provides over 80% of its electricity.
However, rising costs, ageing plants, and growing environmental concerns are pushing the country to adopt renewable energy at a faster pace.
The new off take programme is therefore seen as a step in bridging the gap between government’s decarbonisation goals and the private sector’s need for reliable, cleaner power.
Consequently, Eskom said it was opening the door for businesses to directly source renewable electricity, while advancing national energy security and transition plans.
