By: ESI Africa

Eskom Distribution is advancing its customer-centric product offering by introducing a Renewable Energy Power Purchase Agreement (PPA) solution designed to address the evolving needs of its customers. 

This product offering is a direct response to growing customer demand for accessible and environmentally sustainable electricity solutions that also enhance operational resilience and support broader decarbonisation objectives. 

The initiative draws on insights from an Expression of Interest (EOI) process conducted in January 2025 and multiple direct engagements with commercial and industrial (C&I) customers.

The feedback clearly signalled a preference for direct contracting with Eskom for renewable energy supply, especially through long-term PPAs that enable alignment with global sustainability standards, reduction of carbon footprints and greening of supply chains to improve international competitiveness.

These projects, primarily solar PV installations, are being developed adjacent to Eskom power station sites and are scheduled for commercial operation no later than December 2027.

The renewable energy supplied under this PPA will be delivered on a self-dispatch basis, meaning customers will receive energy as it is generated by the solar PV facilities. There will be no centralised dispatch control or real-time scheduling from Eskom. 

This model empowers customers to integrate renewable energy into their operational energy strategies, with the understanding that supply availability will depend on solar irradiation profiles and weather conditions. 

Buyers will be responsible for balancing their remaining demand requirements through other sources or Eskom supply channels.

In a statement released, Eskom Group Chief Executive, Dan Marokane said this is the next step in the focused execution of Eskom’s strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives.

“We have seen strong interest in Eskom’s capabilities in green energy supply, which this programme demonstrates. Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach,” he said.

Eskom Distribution Acting Group Executive, Agnes Mlambo added that the this programme demonstrates Eskom’s commitment to innovation and building a cleaner, more resilient energy future.

“By offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply, through customer-centred solutions.

“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,” she said.

The programme has the following key features: 

1. Technology: Solar PV
2. Total Available Capacity: 291MW
3. Minimum Contracted Capacity per Customer: 10MW 
4. Contract Term:  5 to 25 years
5. Offtake Mechanism: Power Purchase Agreement (PPA)
6. Commercial Operation Date (COD): No later than December 2027

The solar PV facilities will generate energy in accordance with a typical daily and seasonal generation pattern. Seasonally, summer months yield higher energy output due to longer daylight hours and higher irradiance, while winter months typically show reduced generation.

Customers should factor in these variations in energy availability when planning their procurement and consumption strategies. The blended profile represents an average expected output over time and is intended to support long-term planning and integration into green energy portfolios.

Deadline: 19 September 2025

The utility will host a virtual briefing meeting on 2 September, 2025.