Eskom group executive for strategy and sustainability Nontokoza Hadebe says the decision to establish a ‘GreenCo’ renewables business as a standalone subsidiary separated from Eskom Generation is to help facilitate partnerships, as well as to potentially tap the growing market appetite for green electricity.

Speaking at Resources for Africa’s Coal & Energy Transition Day, Hadebe reiterated the State-owned utility’s aspiration to build 20 GW of renewable energy by 2035, 5 GW of which would arise from just energy transition-linked “repowering” initiatives at existing coal power station sites that are scheduled for decommissioning by 2030.

She also reiterated that the renewables roll-out would be pursued in partnership with the private sector, owing to Eskom’s weak balance sheet and the need to inject the skills required to implement renewables at scale.

Hadebe also provided a snapshot of the breakdown in the future roles of ‘Eskom Green’ relative to Eskom Generation, which was being prepared for unbundling at an undefined future date, alongside the yet-to-be-formed National Electricity Distribution Company of South Africa, and the National Transmission Company South Africa (NTCSA).

NTCSA was already trading separately, but still needed to be fully separated into an independent Transmission System Operator in line with the new Electricity Regulation Amendment Act, which came into force earlier this year.

Hadebe said the separated Eskom Generation business would house coal, nuclear, gas, hydro and long-duration energy storage assets, while Eskom Green would enter into partnerships with the private sector to build solar PV, wind, battery storage and green hydrogen assets.

Asked specifically whether Eskom planned to sell green electricity separately from its fossil-based electricity, Hadebe noted that Eskom had already piloted the sale of non-fossil nuclear electricity and could seek to do the same with renewable electricity.

“It requires a lot of visibility and transparency on how we calculate it, but it will be easier once we have the GreenCo, because, as I indicated, it's not going to be part of our generation business, it’s going to be standalone.”

In a recent presentation to Parliament, Eskom indicated that it was seeking to finalise the governance framework needed for the public-private partnerships it would be seeking to develop its renewables business.

In April, Eskom invited firms with proved renewables credentials to tender to partner with it in setting up its renewables business.

The tender closed on May 7.