
Eskom bets big on renewables with new ‘green' subsidiary
In a presentation to Parliament's portfolio committee on energy and electricity, Eskom shared more details about its strategy to be a player in the renewable energy sector.
The utility's executive was briefing members on their strategic corporate plan for 2025-2030, their shareholder compact for 2025-2026 and budget for 2025-2026.
Eskom board chairperson Mteto Nyati explained that one of the utility's four strategic objectives was to 'facilitate a competitive future energy industry'. As part of this, Eskom aims to significantly increase its renewable energy portfolio, committing to around 5.90GW of clean energy projects by 2030. A part of this objective includes the accelerated establishment of Eskom Green Co, the company's renewable energy business.
Eskom Green will be one of the four unbundled entities that will fall under the Eskom holding company. The other companies are National Transmission Company of South Africa, which is already a legal entity, National Electricity Distribution Company of South Africa and Eskom Generation, which are due to be legally separated next.
'We have embraced, as Eskom, the renewables agenda,' said Nyati. 'In the past, our strategy involved only us managing the current fleet and not participating in new generation capacity.
'That has changed. We are going to be participating in renewables in a big way, and we have already started to operationalise a business unit that makes us to be a relevant player within the space.'
Almost two weeks ago, Eskom issued an invitation to tender for 'firms with a proven track record in establishing renewable energy businesses' to help it start this process. It said the objective of Eskom Green Co would be to 'operate independently of the main Eskom entity to allow for greater governance agility, competitive market positioning and enhanced Public-Private Partnerships (PPPs)'.
Eskom, in a statement, said it had an 'executable initial pipeline' of at least 2GW of low and zero-carbon energy projects by 2026 and had developed a pipeline of more than 20GW of low and zero-carbon energy projects to diversify its energy mix. It plans to 'realise' roughly 5.9GW of renewable energy projects by the end of this decade.
At Friday's meeting, DA MP Kevin Mileham asked for more information about the proposed new entity.
'Why are we breaking out a new entity when it's clearly part of generation? It's a division of generation. It's not a new entity. I mean, nuclear is not an entity by itself. Coal is not an entity by itself. Why is Green Co or Eskom Green a new entity? Why is it going to have its own board of directors? Why is it going to have its own finance team? Why is it going to have its own legal team and HR team, and things like that?
'Aren't we just duplicating already existing personnel capacity infrastructure and therefore increasing our costs?'
In response, Eskom CEO Dan Marokane explained that the unbundling was an operationally motivated decision.
'I want to address the issue that deals with the structure of Eskom going forward, as to why are we having a separate green entity, why is it not within generation?'
'These are all aspects that are operational, that deal with how we bring into reality the strategic intent that we have. Our strategic intent is to unbundle to set up separate entities that will be efficient in their part of the value chain,' said Marokane.
The new green generation part of Eskom's business, he explained, 'is an entity that is required to enable us to unbundle the generation business in a manner that does not make us run the risk of losing all the licences. These are operational matters about structuring and how to set up these transactions in a manner that allows the realisation of the objectives.
'The renewables business is going to be a different business in terms of thinking. It will involve partnerships so that Eskom's balance sheet is not the only one that is exposed. We can't afford to go to the previous levels of debt. So we'll do business as a transaction with others, with their money, on our land, with our people, using our skills and choosing to de-risk those projects because it will be in a competitive world.
'So how it's structured needs to enable that kind of a setup in line with the mandates that we're seeking to have.' DM

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Daily Maverick
8 hours ago
- Daily Maverick
Mozambique's Cahora Bassa Dam expansion plan offers Eskom a fresh clean energy option
The Mozambican government-owned hydroelectric power company is looking at Eskom as a potential customer for the additional 1,245MW generation capacity that it plans to add to its existing plant at the Cahora Bassa Dam. Eskom is already the biggest client of the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa Dam plant, with about 60% of the power generated at the dam travelling more than 1,400km on two parallel power lines between Cahora Bassa in Songo, northern Mozambique and the Apollo substation near Pretoria. Cahora Bassa has a 2,075MW generation capacity, and the Mozambican government is in discussions with the World Bank to raise money for the expansion of the dam's northern bank and the construction of a new hydropower plant at the Mphanda Nkuwa Dam. The latter dam is downstream from Cahora Bassa, also along the same Zambezi River, and is expected to generate 1,500MW of clean energy. The expansion of the Cahora Bassa Dam scheme has received the backing of the World Bank and will increase generation capacity through the installation of three turning turbines – each generating 415MW. The projects are estimated to cost more than $6-billion. With Eskom under pressure to keep the grid stable while trying to meet obligations to use cleaner energy sources, the power utility's spokesperson Daphne Mokwena told Daily Maverick that HCB's plans were in line with Eskom's mandate. 'One of Eskom's mandates is to ensure a reliable, sustainable and clean energy grid for the country. Eskom will review all HCB plans for future growth and give feedback once all the relevant details have been presented,' she said. Mozambique has its own challenges as it has to meet its domestic electricity demand and has set a target of 2030 to meet this need. According to the World Bank 2023 figures, only 36% of the Mozambican population had access to electricity, compared with 87.7% in South Africa. In February 2024, Bloomberg reported – based on an unpublished energy transition strategy – that the Mozambican government intended to end the partnership with Eskom when the contract expired in December 2030. Eskom said talks on the matter were yet to be concluded. Said Mokwena: 'As the discussions are ongoing, there has been no conclusion on this matter. Eskom is therefore not able to comment on this question at this stage'. However, Mokwena stressed that while Eskom continues to buy power from HCB, the utility 'will continue to rely on its own generation fleet'. 'Notably, the returned 800MW from Medupi Unit 4, the additional new 800MW capacity from Kusile Unit 6, and the planned return of 930MW from Koeberg Unit 1 by August 2025 will significantly boost available capacity,' she said. The 50-year-old Cahora Bassa Dam scheme is a Mozambican government flagship and was showcased to World Bank President Ajay Banga, who visited Mozambique last week. Banga was the guest of Mozambican President Daniel Chapo, who is driving the development of Mozambique's untapped energy sources. The 48-year-old Chapo (the governing party, Frelimo's, candidate) was elected president following the disputed October 2024 elections. The development of the war-ravaged country is at the centre of his plans. Ambitious renewable energy plans Chapo said the main objective of the World Bank's visit was to identify areas of possible investment in the country's energy plans. 'Mozambique has a geographic location that allows for wind farms, so we are currently working with the World Bank Group, through the IFC (International Finance Corporation) which is part of the World Bank Group. 'We can have a public-private partnership, who can come and invest in this entire energy matrix we're talking about – producing electricity through hydroelectric plants, solar plants, gas plants, and also wind farms,' said Chapo. Speaking after a tour of Cahora Bassa, Banga said Mozambique had the potential of becoming the 'energy powerhouse' of southern Africa. 'Frankly, in this part of Africa, nobody has the capacity or capability to do what can be done with the assets of this country. 'We are discussing with the government of Mozambique the idea of investing in another 1,500MW downstream from (Cahora Bassa). 'And then in the meantime, we're also doing some investing in solar capacity, 400MW. And then (Chapo) has some master plans, which I think are even more interesting in terms of adding more capacity (at Cahora Bassa) and renovating this plant and then adding further downstream,' said Banga. Cahora Bassa is a major contributor to the Mozambican economy. It generated $547-million in revenue in 2024 and contributed $302-million to the southern African country's fiscus in the same year. HCB CEO Tomás Matola said that while they continued to make a major contribution to the Mozambican economy, the age of the plant was a threat to its revenue plans. He told the World Bank's Banga that they needed to refurbish Cahora Bassa's generators to future-proof the plant. Said Matola: 'From the supply side, our big challenge is because of the age of our equipment. It is 50 years old, so all our equipment is obsolete, so now we need to do a deep rehabilitation of our power plant and substations.' Southern Africa presently has a shortage of 10,000MW, while Mozambique plans to increase its power generation for the benefit of the domestic and the regional market. 'In Mozambique, we do have a challenge of electrification of all the country… So we have increasing demand from the domestic market, but also the regional market,' said Matola. 'As we need to diversify our power matrix, we have a project for producing 400MW of photovoltaic power. We believe that by 2027, we can start building this project,' said Matola, adding that HCB's vision was to generate 4,000MW of clean energy by 2034. The plans for the 400MW solar power plant include the construction of two solar farms with 200MW generation capacity each. Climate change threat to cleaner energy projects While there is a global drive towards renewable energy and less reliance on fossil fuel energy sources, such as coal, cleaner energy sources are not without challenges. For instance, Cahora Bassa's generation capacity has been adversely affected by the drought that has gripped countries along the Zambezi River. The dam's levels are currently at 25%, meaning that water management techniques have to be applied to maintain the flow through the five generators – thus reducing power generation. According to engineers at HCB, that is the lowest level the dam has reached in its 50-year history. That means Eskom has been getting less power from the plant. This was confirmed by Eskom spokesperson Daphne Mokwena, who said that the power utility had received 45% less electricity from Cahora Bassa than the previous year. 'Cyclically, southern Africa is affected by droughts, and Eskom's supply from HCB has been affected. During the droughts, Eskom relies on its own generation fleet. 'Eskom is receiving less power from HCB as compared to the previous year, due to the drought currently affecting the SADC region. The average loss of power is 45% when compared to last year,' said Mokwena. Cahora Bassa Dam is built on the Zambezi River, which flows through six countries – namely Zambia, Angola, Namibia, Botswana, Zimbabwe and then joins the Indian Ocean in Beira, northern Mozambique. The drought in the SADC region has seen levels at Kariba Dam – between Zimbabwe and Zambia – reach an alarming level of about 11% last year. According to the Zambezi River Authority, the Lake Kariba water levels were sitting at 24.3% on 14 July 2025, compared with 11.5% recorded on the same date in 2025. In July 2023, Kariba's levels were at 31%. However, while the levels have improved at Kariba, the benefits have yet to be realised downstream at Cahora Bassa, as the former is not releasing much water as it is still recovering from the lower levels. Fast facts on Cahora Bassa The construction of the dam took place between 1969 and 1974, resulting in the biggest hydroelectric power plant in southern Africa. Power is generated by water passing through five vertical generator units – each producing 415MW and a total of 2,075MW. Eskom is HCB's biggest client, buying 58% of the power generated at the plant, while 39% goes to the Mozambican state-owned energy company – 3% is sold to the Zimbabwean power utility. The staff complement at HCB consists of Mozambican citizens, with 741 permanent workers and 685 seasonal workers. Another 2,000 indirect workers benefit from the plant, through its suppliers. *Source: Hidroeléctrica de Cahora Bassa (HCB) World Bank Group structure The World Bank Group comprises five organisations that specialise in differing areas, namely: The World Bank, whose official name is the International Bank for Reconstruction and Development, which lends to low- and middle-income countries; The International Development Association, which also lends to low-income countries The International Finance Corporation, which lends to the private sector; The Multilateral Investment Guarantee Agency, which 'encourages' private companies to invest in foreign countries; and The International Centre for Settlement of Investment Disputes, which mediates disputes between private investors and foreign countries. DM Sibusiso Ngalwa is a journalist, a cabbage farmer and a breeder of boer goats. His trip was sponsored by the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa plant.


Mail & Guardian
3 days ago
- Mail & Guardian
Operation Vulindlela: Big on policy but low on results
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IOL News
4 days ago
- IOL News
Matshela Koko won't challenge court ruling on R1. 56bn Eskom, ABB settlement
Former acting Eskom chief executive Matshela Koko will not challenge the Gauteng High Court, Pretoria judgment dismissing his application to intervene in the dispute between the power utility and ABB South Africa, which agreed to pay almost R1.56 billion in 2020. Image: Bheki Radebe / Independent Newspapers Former acting Eskom chief executive, Matshela Koko, will not challenge the ruling declining his bid to intervene in the R1.56 billion settlement agreement reached by the power utility and ABB South Africa. The Gauteng High Court, Pretoria, last month dismissed with costs Koko's application to intervene in the matter in terms of an earlier judgment delivered in April 2024. At the time, the high court ordered any interested party who has a direct and material interest in its orders on the R1.56bn settlement to apply within 30 days of the last date of publication of the order for leave to intervene and describe the nature of their interest in the relief and the relief sought. The court also ordered that interested parties must show cause, on a date and on such terms as it may determine after receipt of any application why the order should be altered, varied or rescinded. In compliance with the April 2024 order Koko complained that unflattering allegations were made against him in the papers filed in the review proceedings and that he was referred to by name and some paragraphs contain reference to his conduct. He said the settlement agreement for ABB to pay Eskom had negative consequences for him as his bank account was closed and he suffered reputational harm. In refusing Koko's intervention application, Acting Judge Irene de Vos found that he lacked a direct and substantial interest in the subject matter of the review proceedings. "Koko launched an application to rescind an order in circumstances where he largely accepts the order is correct; where he is not mentioned in either the order or the judgment; for purposes of protecting his reputation," the acting judge stated. The contract in question was for the provision of control and instrumentation system for the coal-fired Kusile Power Station project constructed under Eskom's nation building programme to increase its generating capacity. Eskom, ABB and the Special Investigating Unit (SIU) later applied to the court to set aside the contract as a result of corruption and bribery that occurred in the award. The SIU has publicly indicated that it intends to claim monies from Koko, who fears such action. He told the court that not having been cited in the review proceedings means he is limited in presenting a defence in potential future proceedings to be brought against him. In response to questions, Koko, who represented himself in the matter, said the judgment could be summarised as a mixed outcome, adding that he lost the battle to intervene in the review proceedings, but emerged with a significant procedural victory in the broader context. He further said he won the war by emerging from the case without adverse findings or direct legal accountability. Koko added that this procedural victory distances him from the ABB contract irregularities and undermines the narrative tying him to corruption, providing him with a solid defence in this specific legal chapter. [email protected] [email protected]