South Africa: Eskom targets mainly clean energy sources by 2040

South Africa’s Eskom aims to shift to mainly clean energy sources by 2040, the company said on Wednesday.

The state-owned power utility is currently operating with a predominantly coal-based generation fleet.

Eskom told South African lawmakers it planned to have 32 gigawatts (GW) of renewable energy capacity by 2040, compared to less than 1 GW now.

In the same timeframe, the company wants its coal capacity to shrink from 39 GW to 18 GW.

Eskom generates about 95% of electricity used in South Africa, and is the biggest producer of power on the continent, according to the United States International Trade Administration

But the company has also been criticised for its contribution to air pollution.

In 2021, the Centre for Research on Energy and Clean Air (CREA) think tank named Eskom the world’s largest emitter of sulfur dioxide (SO2), a toxic gas for humans.

Eskom emits more SO2 than the entire power sector of the European Union and the US combined, CREA's assessment found.

The South African company told lawmakers that its R400 billion ($22.31 billion) debt burden slowed its investment in renewable energy.

Eskom has been in a unstable financial situation for several years. The firm reported a R55 billion after-tax loss for the 2024 financial year.

To shift towards a greener production, Eskom said it will "repower” older coal-fired power stations slated for closure with newer technologies.

The firm will also have its own renewable energy business unit to implement new projects and partner with private companies.