South Africa's state-owned power utility, Eskom, launched a new renewable-energy subsidiary called Eskom Green on June 9, 2026 [1].
The move marks a strategic shift for the utility as it attempts to stabilize the national power grid and reduce reliance on fossil fuels. By creating a dedicated unit for clean energy, the utility can target utility-scale projects and sell power directly to heavy industry [2].
Eskom Green is tasked with increasing the supply of renewable electricity across the country. The subsidiary will focus on developing large-scale projects to facilitate South Africa's broader renewable-energy transition [2].
The scale of the ambition is significant. Eskom Green aims to build up to 32 GW of renewable capacity by 2040 [3]. Other reports indicate the utility plans to add 32,000 MW of new renewable energy over the next 14 years [4].
This expansion is intended to modernize the energy infrastructure of the state-owned entity. The creation of this subsidiary allows Eskom to operate more flexibly within the clean-energy market, a critical step for a utility historically dependent on coal.
The launch comes as South Africa seeks to attract more investment into its green economy. By establishing a formal entity for renewables, Eskom provides a clearer structure for the development, and management of wind and solar assets [1].
“Eskom Green aims to build up to 32 GW of renewable capacity by 2040”
The establishment of Eskom Green represents a formal pivot by South Africa's primary power provider toward a diversified energy mix. By separating renewable projects into a dedicated subsidiary, Eskom is attempting to accelerate the deployment of clean energy to mitigate long-term power shortages and meet international climate commitments while securing a direct revenue stream from industrial consumers.
