SAPVIA has welcomed the launch of Eskom Green, saying the new renewable energy business could accelerate investment and strengthen South Africa's energy security if grid access is allocated fairly.
Image: Matt McClain | The Washington Post
The South African Photovoltaic Industry Association (SAPVIA) has welcomed the launch of Eskom Green, Eskom's newly established renewable energy business, describing it as a major step forward for South Africa's energy transition while urging policymakers to ensure fair access to the country's limited grid capacity.
The industry body said the creation of Eskom Green reflects the growing importance of renewable energy and battery storage in South Africa's future electricity mix and signals a significant shift in the country's energy landscape.
Eskom Green has been established as a dedicated vehicle to develop renewable energy and battery storage projects in partnership with the private sector, positioning the utility to play a more active role in expanding generation capacity while advancing South Africa's decarbonisation goals.
SAPVIA chief executive Dr Rethabile Melamu said the launch represented an important milestone for the country's electricity sector.
"The launch of Eskom Green represents a significant milestone in the evolution of South Africa's electricity sector. We call for a partnership with the private sector and members of SAPVIA, and an assurance that access to the limited grid capacity will be shared equitably by all independent power producers and players," said Melamu.
"It signals a clear commitment to renewable energy as a core component of South Africa's future energy mix and creates an important platform for collaboration between Eskom and the renewable energy industry. This is the kind of innovation and partnership that can help unlock investment, accelerate project delivery and strengthen long term energy security."
The association said Eskom Green's plans to develop an initial pipeline of renewable energy projects through partnerships with developers, financiers and technology providers could help unlock significant investment and accelerate the deployment of clean energy infrastructure.
South Africa's renewable energy sector has built substantial expertise over the past decade, particularly through utility scale solar photovoltaic projects and battery energy storage developments.
SAPVIA believes leveraging this experience will be critical if Eskom Green is to achieve its objectives and help address the country's ongoing energy challenges.
"The South African renewable energy industry stands ready to partner Eskom Green in achieving its ambitions," Melamu said.
"Our sector has developed world class capabilities across project development, engineering, financing, construction and operations. Through transparent, bankable and competitive partnership models, Eskom Green has the potential to unlock significant economic value while accelerating the deployment of much needed generation capacity."
The association noted that solar PV technology, supported by battery storage systems, has proven capable of delivering reliable, affordable and clean electricity at scale. As demand for power continues to increase, renewable energy is expected to play an increasingly important role in strengthening energy security and supporting economic growth.
However, SAPVIA cautioned that one of the biggest obstacles facing the next phase of renewable energy expansion remains access to transmission infrastructure.
The organisation said grid capacity constraints continue to limit the development of new renewable energy projects in several regions of the country, making transmission expansion and fair access policies essential.
"Grid availability remains one of the defining challenges and opportunities for South Africa's energy transition," said Melamu.
"Efforts to maximise existing grid capacity while accelerating transmission expansion will be essential if we are to unlock the next wave of renewable energy investment and deliver energy infrastructure at the scale the country requires."
Industry stakeholders have repeatedly highlighted grid congestion as a major barrier to investment, particularly in renewable energy rich provinces where available transmission capacity has become increasingly scarce.
SAPVIA said ensuring equitable access to existing grid infrastructure will be crucial to maintaining investor confidence and enabling a diverse range of renewable energy developers to participate in the market.
The association also stressed the importance of policy certainty, efficient regulatory processes, transparent procurement mechanisms and ongoing engagement between government, Eskom and industry participants.
These issues are expected to feature prominently at SAPVIA's annual general meeting in July, where industry leaders, policymakers and stakeholders will discuss the future of South Africa's solar PV sector and broader energy transition agenda.
"The launch of Eskom Green presents a unique opportunity to build on the progress South Africa has already made in renewable energy," Melamu said.
"Success will depend on collaboration across government, Eskom, investors and industry. If we get this right and secure an equitable share of the limited grid, renewable energy can continue to drive economic growth, support industrial development, create jobs and strengthen South Africa's energy future."
SAPVIA said it looks forward to engaging with Eskom Green and other stakeholders as the initiative develops, with the aim of accelerating renewable energy deployment and strengthening South Africa's long term energy resilience.
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