Eskom solar RFP under SAIPPA review amid market reform
These projects, primarily solar PV installations, are being developed adjacent to Eskom power station sites and are scheduled for commercial operation no later than December 2027
The South African Independent Power Producers Association (SAIPPA) says it is reviewing Eskom’s solar RFP and engaging broadly with the sector to ensure South Africa’s energy market reforms are implemented fairly and effectively.
This comes after Eskom issued a request for proposals (RFP) for 291MW of Eskom’s renewable energy projects (Solar PV) that will be commissioned in phases.
Eskom Distribution is advancing its customer-centric product offering by introducing a Renewable Energy Power Purchase Agreement (PPA) solution designed to address the evolving needs of its customers.
In the Eskom RFP documents, the power utility states that the initiative draws on insights from an Expression of Interest (EOI) process conducted in January 2025 and multiple direct engagements with commercial and industrial (C&I) customers.
“The feedback clearly signalled a preference for direct contracting with Eskom for renewable energy supply, especially through long-term PPAs that enable alignment with global sustainability standards, reduction of carbon footprints and greening of supply chains to improve international competitiveness,” they said.
Penny Herbst, Independent Specialist speaks to ESI Africa about the state of the solar industry in South Africa and the country’s upcoming Market Code which will govern energy trading through a proposed Central Purchasing Agency.
“Eskom seen strong interest in Eskom’s capabilities in green energy”
These projects, primarily solar PV installations, are being developed adjacent to Eskom power station sites and are scheduled for commercial operation no later than December 2027.
SAIPPA said it has noted concerns regarding the potential risk of market dominance by Eskom and is currently assessing this matter internally.
“The structural reforms being implemented via the the Electricity Regulation Act Amendment (ERA) market, which includes Eskom’s unbundling into the National Transmission Company of South Africa (NTCSA) NTCSA unbundling, South African Wholesale Electricity Market (SAWEM), etc are strongly supported. We have to find a way to navigate earnestly towards bringing this new structure to fruition, while being cautious of certain perils along the journey.
“It is in this context that SAIPPA is engaging with the sector broadly to support this ground-breaking reform so that the most effective, equitable, and efficient market structure is established,” the association said.
In a statement released earlier this week, Eskom Group Chief Executive, Dan Marokane said this solar RFP is is the next step in the focused execution of Eskom’s strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives.
Have you read? Eskom calls for bids on 291MW solar PV, phased rollout
“We have seen strong interest in Eskom’s capabilities in green energy supply, which this programme demonstrates. Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach,” he said.
The programme has the following key features:
- Technology: Solar PV
- Total Available Capacity: 291MW
- Minimum Contracted Capacity per Customer: 10MW
- Contract Term: 5 to 25 years
- Offtake Mechanism: Power Purchase Agreement (PPA)
- Commercial Operation Date (COD): No later than December 2027
Cover photo: A solar microgrid set up at Eskom’s decommissioned Komati Power Station. Source: Eskom
