Eskom Welcomes IRP 2025 as Blueprint for SA’s Low-Carbon Energy Future

Eskom has thrown its support behind the newly launched Integrated Resource Plan (IRP) 2025, describing it as a transformative and balanced framework to guide South Africa's energy future. The plan, unveiled by Minister of Electricity and Energy Dr Kgosientsho Ramokgopa, outlines a long-term pathway to achieve energy security, affordability, environmental sustainability, and inclusive economic growth in the transition toward a low-carbon economy.

A Comprehensive Roadmap for South Africa's Energy Transition

The IRP 2025 provides an updated blueprint for the supply, mix, and investment required in South Africa's electricity system over the coming decades. It seeks to address the pressing challenges of energy reliability and economic revitalisation while reducing dependence on high-emission energy sources such as coal.

In its statement, Eskom said the plan would bring renewed clarity and direction to the power sector. "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," the utility noted.

According to Eskom Group Chief Executive Dan Marokane, the plan represents a crucial turning point for both the company and the nation. "It signals to investors, regulators, and our citizens that South Africa has a focused pathway to reach Net Zero inclusively, and provides the opportunity for Eskom to play its role fairly and compete in a reformed electricity supply industry," he said.

A R2.2 Trillion Investment in Energy Transformation

Minister Ramokgopa announced that government intends to invest R2.2 trillion—equivalent to around 30% of South Africa's GDP—to implement the country's comprehensive energy transition. This monumental investment will support new generation capacity, infrastructure upgrades, and green industrialisation projects that aim to stimulate economic growth and job creation.

Eskom welcomed this signal of confidence from the state, highlighting that large-scale private and public investment would be necessary to achieve the ambitious goals of the IRP. "The IRP 2025 requires significant investment to be attracted quickly. That will only come from rules-based regulatory reform anchored in law, enabling investors to deploy capital in South Africa with confidence and certainty," Marokane said.

Eskom's Strategic Alignment with IRP 2025

Eskom has pledged to conduct a thorough review of the new plan and publish a detailed response that will align its corporate strategy with the government's vision. Marokane said Eskom had already been preparing to "accelerate the delivery" of its contribution through the Generation Recovery Plan and turnaround strategy.

"With load shedding largely behind us, the country again has a continuous 24/7 electricity supply — commonly referred to as baseload capacity — that forms the backbone for renewable energy growth," he said.

Marokane explained that renewable energy sources, while vital to a sustainable energy future, require a stable baseload from traditional power generation to maintain grid reliability and security. "Renewables are variable in nature and need reliable, continuous baseload to maintain grid stability and supply," he said.

Operational Recovery and Financial Stability

Eskom's return to profitability for the first time in eight years reflects what Marokane called "long-term structural operational improvements." These include enhanced generation performance, tighter cost control, and better governance structures.

He emphasised that Eskom's skilled workforce and improving financial stability have restored confidence in the utility's ability to deliver on its commitments under IRP 2025. "Combined with our skilled workforce, these improvements will lead to increasing investor confidence to deliver the IRP 2025 with partners," he said.

Strengthening Governance and Regional Energy Integration

Beyond its operational turnaround, Eskom reaffirmed its commitment to strengthening governance structures, reducing financial risk, and ensuring regional energy cooperation. These efforts, the company said, align with its broader mission of promoting energy security and economic development both in South Africa and across the Southern African region.

Marokane stressed that Eskom's role in the IRP 2025 extends beyond power generation. "We remain firmly committed to executing the Generation Recovery Plan, enhancing governance structures, and mitigating financial and operational risks," he said. "These efforts are aligned with Eskom's broader objective of ensuring long-term sustainability, securing energy supply, and contributing meaningfully to South Africa's economy and the wider region."

A Vision for Inclusive Growth and Sustainability

With unemployment at 30% and youth unemployment exceeding 50%, the IRP 2025 also emphasises the socio-economic dimensions of the energy transition. By prioritising job creation, skills development, and inclusive participation in the energy sector, the plan aims to ensure that the benefits of a greener economy are widely shared.

The IRP 2025 thus marks a decisive moment in South Africa's energy evolution — one that positions Eskom not only as a power producer but also as a key enabler of the nation's sustainable industrial transformation.