Eskom offers tariff for businesses to purchase renewable power

South Africa’s Eskom, which generates almost all of the nation’s electricity, is starting a pilot program to allow businesses to buy green power.

“The Renewable Energy Tariff is designed to provide a cost-effective and flexible option for Eskom customers to consume renewable power” and meet their own targets, the company said in a statement on its website. The program gives business customers a mechanism to purchase clean energy from the utility without having to own a renewable energy generator or entering into long-term agreements, it said.


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Eskom burns coal to generate the majority of its power and is planning to use more renewable sources to gain better financing terms and adjust its position as the country’s biggest emitter of greenhouse gas. The utility itself generates some electricity from renewables including wind and hydro.

During the period of the pilot program which will last for two years ending in March 2023, Eskom is offering a maximum of 300 gigawatt-hours annually to customers supplied directly by the utility. The participants will have an option to select any percentage of their current electricity usage to be green. A decision will be taken at the end of the program on whether to submit the tariff for formal approval.

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