Eskom Charts Ambitious Shift to Renewable Energy by 2040

Johannesburg, July 16: South Africa’s state-owned power utility, Eskom, has unveiled an ambitious roadmap to transition from a coal-dependent power generation model to a predominantly clean energy portfolio by 2040.

In a presentation to lawmakers on Wednesday, Eskom outlined its target to develop 32 gigawatts (GW) of renewable energy capacity over the next 15 years—up from less than 1 GW currently. Simultaneously, the utility plans to significantly reduce its coal-fired capacity from 39 GW to 18 GW.

The transition strategy includes a mix of "repowering" ageing coal-fired power stations—replacing outdated generation units with renewable or gas-fired alternatives—and developing new clean energy projects. Several legacy coal plants have already been earmarked for this transformation.

To drive this transition, Eskom will establish an internal renewable energy business unit, which will oversee project implementation and collaborate with private sector partners.

However, the utility acknowledged that its clean energy ambitions face significant financial challenges. Chief among them is Eskom’s mounting debt, which currently stands at 400 billion rand (approximately $22.3 billion). The company also cited rising unpaid bills from municipalities and ongoing uncertainty over state-regulated electricity tariffs, which it says are insufficient to fully recover operational and investment costs.

Despite the hurdles, Eskom reiterated its commitment to achieving a sustainable and diversified energy future, aligning with both national policy goals and global efforts to combat climate change.