Eskom backs government’s new energy plan for driving economic revival

Eskom has welcomed the launch of the IRP 2025, describing it as a clear roadmap to secure South Africa’s energy future while supporting economic growth and sustainability.

In a statement issued on Monday, the power utility said the IRP 2025 balances energy security, affordability, environmental responsibility and socio-economic development as the country transitions from high-carbon to low-carbon energy sources.

“The IRP 2025 is not merely a policy update – it is a clear investment roadmap, informed by the input of over 4 000 interested parties at the public consultation stage,” said Eskom Group chief executive, Dan Marokane.

“It signals to investors, regulators and citizens that South Africa has a focused pathway to reach Net Zero inclusively and provides Eskom with the opportunity to play its role fairly and compete in a reformed electricity supply industry.”

Marokane added that the IRP 2025 provides a robust investment framework for meeting the country’s electricity needs, essential for accelerating inclusive economic growth at a time when unemployment stands at 30% and youth unemployment exceeds 50%.

He emphasised that significant investment would be required to implement the plan successfully, which depends on “rules-based regulatory reform anchored in law” to ensure investor confidence and capital deployment.

The announcement follows the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa’s unveiling of the plan during a media briefing on Sunday.

Ramokgopa said the government intends to invest R2.2 trillion – equivalent to about 30% of the nation’s gross domestic product (GDP) – in a comprehensive energy transformation strategy.

Marokane noted that Eskom would conduct a detailed review of the IRP 2025 and later publish a comprehensive response alongside its updated strategic plan.“We have been preparing to accelerate Eskom’s contribution to the IRP 2025 through our turnaround strategy.

“With load-shedding largely behind us, the country again has a continuous 24/7 electricity supply – the baseload capacity that forms the backbone for renewable energy growth,” he said.

He explained that renewable energy, being variable in nature, depends on reliable baseload power to maintain grid stability and ensure supply.

Eskom’s return to profitability for the first time in eight years, he added, reflects long-term structural improvements that will boost investor confidence in delivering the IRP 2025.

Eskom reaffirmed its commitment to the generation recovery plan, strengthening governance and addressing financial and operational risks.

These efforts form part of the utility’s broader mission to ensure long-term sustainability, secure the nation’s power supply and contribute to South Africa’s economic development and regional energy stability.