The launch of Eskom Green, a new division aimed at expanding renewable energy generation and supporting South Africa’s energy transition, has sparked debate over its potential impact on the country’s electricity sector.
Eskom said the initiative will increase the supply of carbon-free electricity and will operate under the same grid access rules as independent power producers (IPPs), which also compete for limited transmission capacity.
However, the announcement has raised questions about the utility’s expanding role in the renewable energy space and its control over the national grid.
Strategic Lead at The Green Connection, Liz McDaid, says the development raises important policy and governance concerns about Eskom’s evolving structure and market influence.
“And I think one has to ask what is Eskom trying to do?” McDaid said. “Because on the surface, Eskom is going to be split into Eskom Generation, Eskom Transmission, which is the big wires, and Eskom Distribution, which is the household level. These are all state-owned entities, but the whole idea over the last decade has been that renewable energy comes in through independent power producers.”
She explained that South Africa’s renewable energy sector has grown through private investment, municipalities, and large-scale users shifting toward cleaner energy, particularly after regulatory changes eased licensing requirements.
“We have had renewable energy coming in through IPPs… and now mines and big businesses are all trying to move to renewable energy,” she said.
McDaid further questioned Eskom’s expanding role in both traditional and renewable energy generation.
“Eskom owns the grid and the coal-fired stations, and now they want to add a greenish tinge by putting up renewable energy,” she said. “The problem is: are they now going to hog the grid?”
Her comments reflect broader concerns about competition, grid access, and the future balance between state-owned power generation and private sector participation in South Africa’s energy transition.
Listen to the full interview below:
VOC News
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