Eskom says its recently published request for proposals (RFP) inviting large power users to bid for 291 MW of solar PV capacity that the State-owned entity is aiming to introduce in phases from the end of 2027 has been tailored to meet the growing demand of such customers for solutions that reduce their indirect carbon emissions.

Successful bidders for what Eskom is calling its ‘Renewable Energy Offtake Programme’ will enter power purchase agreements (PPAs) of between five and 25 years, with the renewable electricity delivered in phases from multiple Eskom projects.

The earliest project is expected to reach commercial operation by December 2027.

No tariff range has been provided, with Eskom indicating in the RFP that the price bid by prospective offtakers will carry the weighting of 48% in its evaluation, followed by the length of the PPA term (32%) and the size of the offtake (20%).

Eskom has set a minimum offtake size of 10 MW, with the maximum offtake volume aligned to the 291 MW capacity envelope.

The solar PV projects themselves were not identified but Eskom said in a statement that it was targeting 2 GW of construction-ready projects by 2026.

In a recent interview with Engineering News, Eskom group executive for renewables Rivoningo Mnisi confirmed that work was under way on a 5 GW ‘repowering’ project pipeline at Komati, Hendrina, Grootvlei, Arnot, Camden and Kriel. This, alongside efforts to develop a standalone Eskom Green business that would partner with independent power producers to finance and build the renewables plants.

Mnisi also reaffirmed that Eskom has ambitions to develop a 32 GW renewables portfolio by 2040, which has raised questions about how Eskom will secure the finances and whether there will be fair competition for scare grid-connection access.

Mnisi reported that work was under way on a public-private partnership framework, with Eskom having the initial financial capacity to carry the costs of advancing the projects to bankability only, and not for construction. In addition, some of the development finance that could be made available for repowering under the Just Energy Transition Partnership was contingent on there being private participation.

In a statement CEO Dan Marokane described the offtake programme as the “next step in the focused execution of our strategy to integrate additional renewable energy into the grid”.

He reported strong interest in Eskom supplying green energy, noting that the programme followed an expression of interest process and engagements with commercial and industrial customers.

Eskom Distribution acting group executive Agnes Mlambo added that the renewable energy offtake solution would enable customers to transition to low-carbon operations while ensuring a secure and competitive supply.

Large South Africa exporters are pursuing ways to decarbonise their electricity supply in light of the threat coal-fired electricity poses to their future competitiveness. This, as carbon border adjustment mechanisms are introduced, initially in Europe but with indications that similar schemes will be rolled out elsewhere.

The bid submission deadline for the RFP is September 19, 2025.