Eskom’s logo is seen at the Megawatt Park in Sunninghill, South Africa, May 18, 2023. REUTERS
JOHANNESBURG, June 9 (Reuters) – South African state power utility Eskom on Tuesday launched a new business unit focused on developing utility-scale renewable energy projects.
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The unit is part of Eskom’s plans to have up to 32 gigawatts of renewable energy capacity by 2040.
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A former state monopoly, Eskom still supplies the bulk of the electricity in Africa’s biggest economy from its fleet of mainly coal-fired power stations.
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It previously announced plans to pivot to mainly clean energy sources by 2040.
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Eskom Green will operate within Eskom Holdings before being separated into a wholly-owned subsidiary with an independent board, the utility said in a statement.
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It will target energy-intensive sectors such as mining and manufacturing, offering contracts for renewable power backed by storage.
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It aims to have about 6 gigawatts of carbon-free electricity available up to 2030, drawing on a pipeline of renewable energy and storage projects under development.
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Funding for the initial phases has been provisioned within Eskom’s approved capital expenditure programme and will be supported through on-balance sheet funding, Eskom said.
Reporting by Nilutpal Timsina; Editing by Alexander Winning
