Eskom Holdings SOC Ltd has issued an Invitation To Tender (ITT) for firms with a proven track record in establishing renewable energy businesses to assist Eskom in setting up a subsidiary entity in this field.
Eskom is looking to the private sector to help it establish a subsidiary renewable energy business.
Eskom will evaluate the submissions on set criteria that include the requirement for a proven track record in establishing a renewable energy company, the number of public-private partnerships (PPPs) and special purpose vehicles (SPVs) created that have delivered projects, the IPP business model, financial structuring expertise, technical capability, and sector knowledge. The opportunity to respond to the tender closes on 7 May 2025 at 10:00 (SAST). The ITT can be found on the Eskom website. The support will be required over a period of 12 months.
The new subsidiary is intended to operate independently of the main Eskom entity, to allow for greater governance agility, competitive market positioning, and enhanced public-private partnerships (PPPs).
“Agility and efficiency are core in preparing for a competitive marketplace and ensuring we serve our current and future customers with the electricity supply solutions they require. We are now a year into our turnaround strategy and, as well as focusing on ending load shedding, we are turning Eskom towards becoming a sustainable and competitive company, ensuring security of supply,” said Dan Marokane, Group Chief Executive of Eskom.
“To make a valuable impact in the renewables space, we recognised that the most cost-effective way to do this is to bring in, at the start, some new skills, thinking and expertise to set our Eskom teams up for success in the business. With knowledge transfer we will be better placed to execute strategic initiatives in a competitive market faster and more efficiently. The formation of our renewable energy business also forms part of Eskom’s focus in South Africa and internationally, to identify the latest developments and strategies to reduce carbon emissions and other air pollutants,” Marokane said.
Eskom remains focused on a balanced and diversified energy mix based on existing coal and nuclear resources and introducing gas for baseload power, as well as renewables, energy storage systems including BESS (Battery Energy Storage Systems) and pumped hydro, to achieve overall security of supply and to meet South Africa’s growing electricity demand in a sustainable way.
Eskom has an executable initial pipeline of at least 2 GW of clean energy projects by 2026 and has developed a pipeline of more than 20 GW of clean energy projects to diversify its energy mix. The utility says it will update the marketplace on progress in the development of its Renewable Energy business throughout 2025.
Commenting on this move, the Minister of Forestry, Fisheries and the Environment, Dr Dion George, welcomed Eskom’s issuing of the invitation to tender to establish a separate renewable energy business.
“This reflects Eskom’s dedication to accelerating renewable energy deployment and supporting South Africa’s transition to a cleaner, more sustainable energy future, consistent with the nation’s Just Energy Transition objectives and commitments under the Paris Agreement,” the minister said.
He acknowledged Eskom’s proactive approach and called for a transparent, competitive, and inclusive tender process that fosters opportunities for local and international expertise.
The DFFE will monitor the initiative’s progress closely to ensure alignment with South Africa’s Nationally Determined Contributions (NDCs), the 2050 net-zero emissions target, as well as the stringent conditions imposed on Eskom on 31 March 2025 that support compliance with the Minimum Emissions Standards (MES).
The minister further encouraged IPPs and the private sector to participate, driving innovation and investment to bolster renewable energy capacity. “Through collective effort, South Africa can build a resilient, inclusive, and environmentally sustainable energy sector that upholds the constitutional mandate to protect the health and wellbeing of all its citizens,” he said.
For more information visit: www.eskom.co.za
