Eskom Holdings reports that it has now secured the required approvals to establish Eskom Green as a wholly-owned renewables subsidiary that is able to raise funding and enter into public-private partnerships.
The approvals were made in terms of Section 54(2) of the Public Finance Management Act (PFMA), alongside the applicable conditions of the Eskom Debt Relief Act, which placed restrictions on the raising of new debt for generation investments.
“Eskom Green can now crowd-in external capital and expertise and [the approval] enables private sector investors to be able to partner and invest with Eskom Green and utilise our experience and skills to deliver very compelling and competitive utility-scale renewable energy supply offerings to customers,” Eskom renewables group executive Rivoningo Mnisi said in a statement.
Eskom Green will now initiate a market process to establish a panel of strategic partners to support the delivery of renewable-energy projects through project-financed special purpose vehicles (SPVs) and strategic partnerships.
It has appointed PwC and the Development Bank of Southern Africa to advise it on the process.
