South Africa's Eskom Launches 6 GW Renewables Tender

Eskom's October 2026 tender for 6 GW of solar-plus-storage projects accelerates South Africa's shift from coal dependency toward grid-stable, cheaper electricity.

Eskom launched a request for qualification on October 12, 2026, seeking developers for up to 6 GW of utility-scale renewable energy and energy storage projects. The tender mandates at least 2 GW of solar photovoltaic capacity and 1 GW/4 GWh of battery storage systems. Selected projects will operate under a five-year co-development framework with Eskom, structured through dedicated special purpose vehicles. This follows South Africa’s existing solar capacity exceeding 10 GW after 1.6 GW was added in 2025, though Eskom still relies heavily on coal-fired plants and diesel peaking stations—costing hundreds of millions of rands annually.

The mechanism hinges on Eskom Green, a subsidiary launched in July 2026, which is part of a broader restructuring strategy initiated in 2023. By co-investing with developers through project finance, Eskom aims to scale renewable capacity while addressing grid instability. This directly targets South Africa’s electricity market reforms, including plans for a wholesale market that could reduce reliance on costly diesel.

This tender moves energy affordability for South Africa’s households and businesses by scaling down diesel dependency and grid volatility. Cheaper, more stable electricity could lower costs for critical needs like lighting and heating, especially as the country adds solar capacity. However, Eskom’s financial pressure and regulatory risks—highlighted by analysts—mean private investment may stall without clearer frameworks.

What to watch: Eskom’s ability to secure project finance and navigate regulatory hurdles by mid-2027. The source notes financial strain and potential delays in private investment could limit the scale of this transition.

Source: pv magazine