South Africa’s state-owned power utility Eskom is looking beyond electricity generation as competition reshapes the country’s energy market. Chief Executive Officer Dan Marokane says the company is exploring new revenue streams from data centres, electric vehicles, renewable energy and electricity exports as it prepares for a more open market in which private generators, distributors and traders play a larger role. The shift marks a change in Eskom’s approach, with the utility accepting that it can no longer rely on controlling every part of the electricity value chain.
Eskom is preparing for the restructuring of South Africa’s electricity sector, including the separation of transmission from other parts of the business. Marokane has described the reforms as irreversible and said the utility has abandoned the idea of owning or operating everything itself. The company’s challenge is to identify where its existing infrastructure, generation capacity and regional connections can create value as customers gain more options for sourcing electricity.
Data centres and electric vehicles are among the new opportunities Eskom wants to pursue. Data centres require large, dependable electricity supplies to support cloud computing and digital services, while the expansion of electric mobility creates demand for charging infrastructure. Eskom is working with data-centre developers and considering installing electric-vehicle charging stations. It also sees an opportunity to supply more renewable electricity to customers seeking to meet their sustainability targets.
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Regional electricity exports could provide another source of revenue. Marokane said Eskom has been able to supply power to mining operations in the Copperbelt as drought reduced electricity availability in Zambia, while there is also interest from the Democratic Republic of Congo in accessing surplus electricity. He estimates that Eskom currently supplies more than 85% to 90% of South Africa’s electricity and has between 3 GW and 5 GW of excess generating capacity. However, that surplus reflects not only improvements in Eskom’s operations but also businesses and households installing their own solar panels and battery storage.
The strategy comes as Eskom faces a different commercial environment from the one in which it built its dominant position. More private generation means that maintaining its historical market share cannot be the only measure of success. The utility will need to turn its capacity and infrastructure into competitive offerings while managing an ageing coal-fired fleet and adapting to changes in electricity trading. Its next phase will therefore depend not simply on how much power it generates, but on whether it can develop new customers, expand regional sales and remain financially sustainable as South Africa’s electricity market opens up.
