South Africa’s state-owned power utility Eskom has launched a tender for 291 MW of solar photovoltaic (PV) capacity under long-term power purchase agreements (PPAs) with independent power producers (IPPs), PV magazine reported.

According to the request for proposals (RfP), projects must be at least 10 MW in size to qualify. The capacity will be commissioned in phases, with Eskom considering PPAs with durations of five, 10, 15, 20 and 25 years. A clarification meeting is set to be held online on September 2, and proposals must be submitted electronically by September 19, the media outlet noted.

The tender comes shortly after Eskom opened an engineering, procurement and construction (EPC) opportunity for a 72-MW solar project, with applications due by September 30. It also follows the South African government’s July approval of six new solar projects totalling 1.29 GW under the seventh bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), Renewables Now reported on August14.

According to the Africa Solar Industry Association (AFSIA), the continent’s operational solar capacity surpassed 20 GWp in the first half of 2025, with South Africa accounting for nearly half of that. The country deployed 1.1 GW of solar in 2024, following a record year in 2023, and has set a target of adding at least 3 GW of new renewable capacity annually, rising to 5 GW per year by 2030.

Eskom’s recent move to have the High Court review and set aside five domestic electricity trading licences granted by the National Energy Regulator of South Africa (NERSA) to IPPs has attracted criticism from the country’s leading business advocacy associations.

Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged the government to protect the national energy reform programme, which they say is being threatened by Eskom, NewsBase reported.

During a recent media briefing, South Africa’s Electricity and Energy Minister Kgosientsho Ramokgopa rejected claims that Eskom was resisting the electricity sector reform process and maintained that the government remained committed to its course.

However, the minister confirmed that he had asked the Eskom board not to proceed with its legal case against NERSA’s decision to license electricity traders.

Furthermore, Ramokgopa argued that Eskom should be allowed to play an active role in South Africa’s energy transition, including investing in renewable power.

According to the minister, the utility has outlined plans for a 5 GW portfolio linked to land and infrastructure at coal plants due to retire by 2030, with a longer-term ambition to build 32 GW of renewables by 2040. To this end, Eskom was setting up a dedicated entity, Eskom Green, to develop projects in partnership with IPPs, he said as reported by Engineering News.

Ramokgopa stressed that any projects must be cost-competitive, warning that “if Eskom’s prices are not right, they will be decimated.” He noted that 8 GW of coal will be retired by 2030 and 15 GW by 2035, adding that Eskom should not be excluded from adding new capacity alongside private developers.