- Eskom plans to cut coal capacity from 39GW to 18GW and expand renewables from under 1GW to 32GW by 2040 through repowering and new projects.
- The utility will create a dedicated renewables unit but faces hurdles, including a $22bn debt burden and unpaid municipal bills.
South Africa’s state-owned power utility, Eskom, announced on Wednesday, July 16, that it plans to shift its power generation mix to mostly clean energy by 2040, moving away from its current dependence on coal.
In a presentation to lawmakers, Eskom outlined its goal to install 32 gigawatts (GW) of renewable energy capacity by 2040, up from less than 1 GW today. Over the same period, the utility plans to cut its coal-fired capacity from 39 GW to 18 GW.
To achieve this, Eskom said it would roll out renewable energy projects through new developments and the “repowering” of ageing coal plants. Repowering involves replacing outdated equipment at coal-fired stations with modern systems, including renewable energy or gas-fired units.
The utility has identified several coal plants slated for repowering and said it would use internal resources and private sector partnerships to deliver the projects. Eskom added that an in-house renewable energy business unit will lead the transition.
However, Eskom flagged significant financial challenges that could delay progress. The utility pointed to its R400 billion ($22.31 billion) debt burden as a considerable barrier to new investment in clean energy.
Eskom also highlighted the growing debts owed by municipalities and ongoing uncertainty over regulated electricity tariffs, which it said are too low to recover operating costs.
Despite these hurdles, Eskom reiterated its long-term commitment to clean energy, positioning itself at the centre of South Africa’s broader transition to a low-carbon economy.