South Africa's state-owned energy company, Eskom, has announced its commitment to shift towards renewable energy sources by 2040, according to Africanews Agency, citing the company's official statement.
At present, Eskom produces approximately 95% of South Africa's electricity, relying heavily on coal-powered plants. Under its new strategy, Eskom aims to expand its renewable energy capacity from the current 1 GW to an ambitious 32 GW by 2040. Simultaneously, coal-based generation is planned to decrease from 39 GW to 18 GW.
To achieve these objectives, Eskom will establish a dedicated division focused on renewable energy development. This new unit will spearhead project implementation and forge partnerships with private sector stakeholders to accelerate the country's green transition.
However, the pathway to clean energy faces substantial financial hurdles. Eskom is currently struggling with a debt burden of around 22.3 billion US dollars. The company also reported after-tax losses totaling 55 billion rand for the 2024 financial year.
Eskom remains the largest electricity producer in Africa, but it is also one of the continent's main polluters. According to the Centre for Research on Energy and Clean Air (CREA), Eskom emits more sulfur dioxide than the entire energy sectors of the European Union and the United States combined.
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This shift towards renewables is seen as critical for South Africa to meet its climate goals and improve air quality. The government and Eskom are working together to secure international investment, modernize infrastructure, and provide retraining for workers currently employed in the coal sector. Environmental advocates emphasize that, while the transition is challenging, it is necessary to address longstanding problems with power outages, improve health outcomes, and position South Africa as a leader in sustainable energy on the continent.
Evgeniya Mylnikova
