Eskom is seeking private-sector partners to help develop up to 6 gigawatts (GW) of renewable energy and battery storage capacity in South Africa, creating a major investment opportunity as the utility works to diversify its electricity supply. The programme will cover solar, wind and energy storage projects, with the first phase designed to bring new generation capacity into the country’s power system.

The state-owned utility has launched a request for qualification (RFQ) to identify companies with the technical expertise, financial strength and project development experience to co-develop, finance, build and operate utility-scale renewable energy projects. Selected companies will join a panel of pre-qualified strategic partners eligible to compete for future project-specific contracts.

The initiative will be managed through Eskom Green, a new renewable energy business being incorporated as a wholly owned subsidiary of Eskom Holdings. By drawing on private capital and development expertise, Eskom aims to accelerate renewable energy deployment while creating a framework for long-term investment in South Africa’s electricity infrastructure.

Solar and battery projects anchor first phase

Eskom’s initial contribution to the programme will include at least 2 GW of solar photovoltaic capacity and battery energy storage systems rated at 1 GW with 4 gigawatt-hours (GWh) of storage. Projects developed or originated by selected partners may expand the portfolio to the programme’s overall target of up to 6 GW.

The broader initiative will accommodate solar, wind, battery storage and other renewable technologies. The utility said the programme forms part of its strategy to diversify generation, support South Africa’s energy transition and increase access to cleaner electricity.

The selected partners will form a panel of co-development and co-investment companies for five years. Funding structures and commercial arrangements will be determined separately for each project, allowing the utility and its partners to establish financing and implementation models suited to individual developments.

Eskom opens pipeline to private capital

The RFQ is the first stage of procurement, not a direct award of construction contracts. Companies that qualify may be invited to participate in subsequent requests for purchase, subject to the terms of the process and the requirements of individual projects.

Prospective partners must demonstrate technical capability, a track record in project development, financial capacity and the ability to deliver projects across their full lifecycle, including construction, operations and maintenance.

Eskom Green is offering access to a pipeline of solar, wind and battery storage developments at different stages of readiness. The utility said its contributed projects have allocated sites, with associated land rights, environmental authorisations and grid connection access at varying stages of progress.

Five-year partnership framework takes shape

Projects are expected to be housed in ring-fenced special-purpose vehicles and financed predominantly through limited-recourse or non-recourse project finance. Similar arrangements are anticipated for projects brought forward by strategic partners.

Until Eskom Green is formally incorporated, Eskom Holdings will administer the RFQ and subsequent procurement stages on the new entity’s behalf.

After incorporation, Eskom Green may assume responsibility for some or all of the process, with respondents to be notified in writing.

The five-year framework could give renewable energy developers, infrastructure investors and project financiers a route into South Africa’s utility-scale clean power market, with opportunities spanning generation and storage.

However, actual investment commitments, project awards and financing requirements will depend on the procurement outcomes and the structure of individual projects.