State-owned electricity utility Eskom has initiated a procurement process to select renewable energy partners for the financing and implementation of up to 6 GW of utility-scale renewable energy and battery storage projects by 2030.
The process is part of Eskom’s plans to expand its renewable energy portfolio while establishing a dedicated renewable energy subsidiary, Eskom Green. The company has issued a Request for Qualification (RFQ), marking the first stage of a two-stage procurement process. Entities that qualify during the RFQ stage will be invited to participate in a subsequent Request for Proposals (RFP) process.
The RFQ was issued by Eskom Holdings on October 2. However, Eskom has indicated that the transaction agreements resulting from the procurement process are expected to be transferred to Eskom Green once the subsidiary is formally incorporated.
Eskom Green is being developed as a commercially viable and investable renewable energy platform. According to the procurement document, the subsidiary is intended to mobilise both private and public capital at scale to support renewable energy development.
The platform is expected to use project-financed special purpose vehicles and strategic partnerships to develop and finance projects. Through this approach, Eskom aims to bring additional investment and technical capabilities into the development of large-scale renewable energy and battery storage assets.
The planned portfolio could include up to 6 GW of utility-scale renewable energy and battery projects targeted for implementation by 2030. The procurement process is therefore expected to create opportunities for developers, investors, financiers and other strategic partners with the required capabilities and experience.
The two-stage structure will allow Eskom to first assess the qualifications and capabilities of potential partners before inviting selected entities to submit detailed proposals. The RFP stage is expected to provide the basis for selecting partners for specific projects or investment opportunities within the planned portfolio.
The establishment of Eskom Green forms part of the utility’s broader efforts to participate more actively in the renewable energy sector. The subsidiary model is intended to provide a dedicated platform for renewable energy investment and project development, separate from Eskom’s traditional electricity generation and utility operations.
By creating an investable platform capable of attracting different sources of capital, Eskom Green could support the mobilisation of funding required for large-scale renewable energy and storage projects. The initiative also signals Eskom’s intention to expand partnerships with private-sector participants as South Africa increases its renewable energy capacity.
The RFQ represents an important initial step toward establishing the planned 6 GW portfolio. Further details on individual projects, selected partners and investment structures are expected to emerge as Eskom progresses from the qualification stage to the RFP process.
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