South African state-owned power utility Eskom announced plans to develop up to 2 GW of renewable energy capacity by 2026 as the country aims to increase energy availability. The utility also aims to return more than 2.5 GW to the nation grid by March 2025 while accelerating the implementation of projects under the country’s Just Energy Transition – an initiative to achieve net-zero by 2050 through the adoption of clean energy projects.
According to Eskom Group Chief Executive Dan Marokane, the utility plans to repurpose and repower existing coal-fired power stations through the deployment of renewable energy and storage projects at or in close proximity to the stations. This plan comprises up to 50 projects with a capacity of over 2 GW and aims to provide alternative job opportunities for those working at coal stations.
The projects include a mix of solar, wind and hydropower facilities, all of which are currently being evaluated and awaiting ministerial approval.
Meanwhile, the utility announced that the National Transmission Company of South Africa – a dedicated transmission entity – is on track to start operations by July 1, 2024. The company was established as part of an unbundling initiative, which aims to separate key functions of Eskom to improve operational efficiency. Additionally, Eskom is looking at creating a dedicated generation company within the next 24 to 36 months as part of the unbundling process.
“We are putting the building blocks in place to rebuild trust and credibility in Eskom through transparent performance, with the intent to reaffirm the company as worthy of future investment as we undertake our strategic initiatives. It is our intention to remain a critical player in South Africa’s evolving future energy market,” Marokane stated.
