South African state-owned electricity provider Eskom launched a new division on Tuesday tasked with developing large-scale renewable energy projects.
This unit is part of Eskom's projects to achieve a renewable energy production capacity of up to 32 gigawatts by 2040.
Formerly a state monopoly, the South African company still supplies most of the electricity to Africa's largest economy through its fleet of power plants, which are mainly coal-fired.
Eskom Green will operate within Eskom Holdings before being spun off into a wholly owned subsidiary with an independent board of directors, the group said in a statement.
It will target energy-intensive sectors such as mining and manufacturing, offering renewable electricity contracts backed by storage solutions.
It aims to have around 6 gigawatts of carbon-free electricity by 2030, relying on a portfolio of renewable energy and storage projects currently under development.
Funding for the initial phases was planned as part of Eskom's approved capital expenditure program and will be supported by balance sheet-listed financing, Eskom said.
