South African utility Eskom has formally announced its renewable energy offtake program.

The program will invite large consumers in South Africa to sign power purchase agreements (PPA) for renewable energy from Eskom-owned sites. It kicked off with a request for proposals covering 291 MW of solar capacity, announced last week.

Successful bidders will enter PPAs ranging between five and 25 years, with renewable energy set to be delivered in phases from multiple Eskom projects. The earliest project is expected to reach commercial operation by December 2027. The tender is open for applications until September 19.

According to a statement released by Eskom, the procurement exercise follows a strong response from industrial and commercial users during an expression of interest process that revealed “a clear demand for direct access to green energy.”

Eskom Group Chief Executive Dan Marokane said the offtake program is the next step in the utility’s strategy to integrate additional renewable energy into the grid.

“We have seen strong interest in Eskom’s capabilities in green energy supply, which this program demonstrates,” Marokane added. “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.”

South Africa deployed 1.1 GW of solar in 2024, following a record year for solar additions in 2023. It has set a target of adding at least 3 GW of new renewables per year, increasing to 5 GW by 2030.