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South Africa’s Eskom called for proposals from large power users to buy solar energy, in a step by the utility to wind down its dependence on coal.
Eskom, which generates more than 80 percent of its electricity from the dirtiest fossil fuel, issued a request for long-term power-purchase agreements from industrial customers, the company said in a statement yesterday.
The contracts will range from five to 25 years, with the earliest project reaching commercial operation by the end of 2027.
The move puts the century-old utility in direct competition with private renewable-energy companies and platforms, creating a more dynamic environment in Africa’s most industrialised nation.
Business-lobby groups earlier this month called for Eskom to withdraw its legal challenge against trading licenses granted by the national regulator.
Electricity Minister Kgosientsho Ramokgopa echoed this, asking the utility to withdraw or suspend the action.
Eskom has largely stabilised South Africa’s electricity grid after years of record power outages that crimped economic growth.
The government has taken measures to split the company into generation, transmission and distribution units and design regulation to open the market to private traders.
“A dedicated renewable-energy business will accelerate deployment, targeting two gigawatts of construction-ready projects by 2026 and scaling up to 32 gigawatts, including green hydrogen, by 2040,” Eskom said.
The emerging technology hasn’t been in earlier forecasts by the company to build out clean energy capacity.
“Engaging with the private sector in this structured manner gives impetus to Eskom’s efforts to create a sustainable pathway for clean power integration into the grid,” Eskom Distribution acting group executive Agnes Mlambo said in the statement.
The proposals for solar power are due by September 19, according to the utility. — Bloomberg
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