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South Africa Backs Eskom’s New Renewable Energy Subsidiary


Environmental Sustainability

South Africa Supports Eskom’s New Renewable Energy Unit

A significant step in South Africa's transition to clean energy, supported by Minister Dion George, will be the launch of a stand-alone renewable energy unit by Eskom.

In a landmark moment for the energy future of South Africa, Minister of Forestry, Fisheries and the Environment, Dr Dion George, has given the green light to Eskom's opening up of a tender to create a standalone renewable energy business unit. It is a critical step in both the company's ongoing restructuring and the broader trajectory of the nation toward achieving a low-carbon, climate-resilient economy.

Minister George praised the utility's renewed commitment to sustainable energy in a statement, saying that this significant step reflects Eskom's commitment to accelerating the deployment of renewable energy and supporting South Africa's transition to a cleaner, more sustainable energy future, consistent with the country's JET objectives and commitments under the Paris Agreement.

While backing this decision, the Minister has also decided to conditionally exempt some of Eskom's coal-fired power plants from emissions beyond March 31, 2025. The stringent conditions on which such exemptions are granted underline the urgency of a speedy incorporation of renewable sources to meet South Africa's Minimum Emissions Standards (MES).

This will better enable Eskom to optimize South Africa's abundant solar and wind resource base moving forward.  Additionally, it is also apparently going to put Eskom in a better place to contribute to the diversification of the economy, gain competitive green financing, and have long-term economic and environmental benefits.

The launch of this renewable energy unit will make a tremendous alteration in South Africa's energy sector. By separating clean energy activities from its old and still substantive coal stack, Eskom has embarked on a major step towards modernity for the environmentally responsible utility.


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