Strategic Alliance to Deliver 2GW of Renewable Energy by 2026
In a decisive move to accelerate its renewable energy strategy, Eskom has signed a Memorandum of Understanding (MoU) with mining and energy company Exxaro Resources, aiming to harness 2 gigawatts (GW) of renewable power by 2026.
Announced on Monday, the agreement focuses on deep collaboration between the state-owned power utility and Exxaro in reducing carbon emissions, improving air quality, and ensuring a just energy transition.
New Renewable Energy Unit Signals a Strategic Pivot
The partnership follows closely on the heels of Eskom issuing a tender last week to establish a dedicated renewable energy business unit—marking a clear pivot in the utility’s long-term operational approach.
At the heart of the MoU is a joint commitment to tackling Scope 1, 2, and 3 emissions, encompassing direct and indirect emissions across the energy value chain. The two entities are also exploring investments in advanced decarbonisation technologies to speed up the transition from fossil fuels.
The agreement also highlights the importance of inclusive economic participation. Areas such as skills development, job creation in the green economy, and community engagement are set to form a vital part of the broader shift toward climate resilience.
Eskom CEO Dan Marokane said the utility’s evolution into renewable energy was not only a strategic imperative but a moral one.
Repurposing the Workforce for the Future
“Our ambition goes beyond ending load shedding. It’s about reimagining the future of our workforce and our infrastructure,” Marokane said. “There’s no reason Eskom shouldn’t be a major player in the renewable space. We have the land, we have the people, and we’re ready to partner with others to de-risk our journey.”
He emphasized that Eskom’s 42,000-strong workforce must be repurposed for a sustainable energy future and dismissed criticism that Eskom couldn’t compete with Independent Power Producers (IPPs).
“We are entering an era of partnerships,” Marokane added. “This is a space Eskom must and will occupy.”
Government Backs Eskom’s Green Vision
The announcement was welcomed by Minister of Forestry, Fisheries and the Environment, Dr Dion George, who praised Eskom’s recent tender to create a separate renewable division. He described it as a clear signal of the utility’s commitment to advancing South Africa’s Just Energy Transition (JET) and meeting its Paris Agreement climate targets.
Conditional Emissions Exemptions Come with Accountability
However, the minister tempered his support with accountability. Last month, he conditionally approved emissions exemptions for several coal-fired power plants, including the Medupi Power Station, but demanded a fresh cost-benefit analysis within six months.
“Medupi is a significant polluter. There’s been concern over the high cost of emissions mitigation, but I want the numbers re-examined properly,” George said. “We’re prepared for legal challenges if they come. But I don’t go to court unless I know I can win.”
The minister has also extended operating licences for eight coal-fired stations, citing the need to balance environmental priorities with energy security.
