South Africa’s state-owned power utility, Eskom, has unveiled an ambitious roadmap to phase out coal entirely by 2040, marking a pivotal shift in the country’s energy trajectory.
In a statement released on Wednesday, the utility announced plans to scale up renewable energy capacity to 32 gigawatts (GW)—a dramatic increase from its current sub-1 GW capacity—while reducing coal-based generation from 39 GW to 18 GW over the same period.
South Africa remains heavily dependent on coal, which accounts for over 80% of its electricity generation. However, the transition to cleaner energy has gained momentum following a $2.2 billion funding commitment from World Bank-linked sources, aimed at accelerating the country’s decarbonisation efforts under the Paris Accord.
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Central to Eskom’s strategy is the repowering of ageing coal-fired power stations, converting obsolete infrastructure into hybrid sites powered by solar, wind, and battery storage. The Komati Power Station, decommissioned in 2022, now serves as a pilot project combining 150 MW of solar, 70 MW of wind, and 150 MW of battery storage.
The company also plans to establish a dedicated in-house renewable energy business unit to lead project implementation and foster collaboration with private sector actors.
Despite these promising developments, Eskom’s path to net-zero is fraught with challenges. The utility is burdened by R400 billion (US$22.3 billion) in debt, compounded by rising arrears from municipalities and unsustainable tariff structures. Technical difficulties related to integrating intermittent renewables into South Africa’s ageing grid infrastructure further complicate the transition.
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Nonetheless, Eskom’s strategy signals a transformational shift for Africa’s most industrialised nation, aligning energy policy with sustainability and economic opportunity. Success will hinge on balancing environmental imperatives with financial viability and infrastructure reform, ensuring a just and inclusive energy future.
