Cape Town: South Africa’s state-run power utility Eskom has unveiled an ambitious plan to transition from its coal-dominated energy portfolio to primarily clean energy sources by 2040. The shift marks a significant turn in the country's energy landscape, long reliant on fossil fuels.
According to a presentation made to lawmakers, Eskom is targeting the development of 32 gigawatts (GW) of renewable energy capacity by 2040 a massive leap from its current base of under 1 GW. Simultaneously, its coal-fired generation is set to drop dramatically, from the existing 39 GW to just 18 GW.
Eskom intends to achieve this transition by "repowering" aging coal-fired plants that are nearing retirement, replacing outdated infrastructure with new renewable or gas-fired systems. This dual strategy includes both the modernization of old plants and the launch of entirely new green energy projects.
To spearhead the shift, Eskom will establish a dedicated internal unit focused on renewable energy development. This unit will also facilitate partnerships with private players in the energy sector to accelerate clean power rollouts.
However, the journey to sustainability is not without its roadblocks. Eskom is currently burdened with a staggering debt of 400 billion rand (approximately $22.3 billion), which continues to hamper large-scale investment in green projects. Additionally, the utility faces financial strain from mounting unpaid municipal bills and uncertainties surrounding government-regulated tariffs, which Eskom claims do not adequately cover its operational costs.
Despite these challenges, Eskom’s renewed focus on renewables signals a transformative era for South Africa’s energy sector one that could reshape its carbon footprint and boost long-term sustainability.