Eskom Welcomes Launch of IRP 2025 as Clear Roadmap for Energy Transition and Economic Growth
Eskom has hailed the introduction of the Integrated Resource Plan (IRP) 2025 as a vital step forward in South Africa’s shift from high-carbon to low-carbon energy sources. The plan aims to balance energy security, affordability, environmental sustainability, and socio-economic factors, while drawing in massive investments to boost the economy. In a statement on Monday, the power utility said the IRP offers a solid framework for adding new electricity capacity, which is key to speeding up growth and creating jobs in a country where unemployment sits at 30% overall and over 50% for young people. Eskom Group Chief Executive Dan Marokane stressed that the plan is more than just an update—it’s a guide for investors, showing South Africa’s path to net-zero emissions in an inclusive way.
The IRP 2025 was unveiled by Minister of Electricity and Energy Dr Kgosientsho Ramokgopa at a media briefing on Sunday. It calls for a huge R2.2 trillion investment—about 30% of the nation’s gross domestic product (GDP)—in a full energy overhaul. This comes as South Africa deals with ongoing power issues, but recent improvements, like no load shedding for months, show progress in fixing the grid. Eskom plans to review the IRP in detail and update its strategy to match, focusing on its role in a changing electricity market.
A Comprehensive Plan for South Africa’s Energy Future
The IRP 2025 sets out a long-term vision for the country’s electricity supply up to 2050, with a focus on adding 105 gigawatts (GW) or 105,000 megawatts (MW) of new generation capacity between now and 2039. This massive build-out includes a mix of renewable sources like solar and wind, along with nuclear power, to cut down on coal reliance while keeping the lights on. The plan was shaped by input from over 4,000 stakeholders during public consultations, making it a people-driven roadmap.
Ramokgopa explained that the strategy will tackle electricity shortages, drive economic growth, and create jobs, aiming for 3% GDP growth by 2030. It prioritises clean energy to meet global climate goals, with big expansions in solar, wind, and green hydrogen. For coal, Eskom’s fleet will run at 66-68% energy availability from 2025 to 2030, gradually phasing out older plants. This shift supports South Africa’s Just Energy Transition, ensuring workers in coal areas get new opportunities in green industries.
The plan also stresses the need for quick regulatory changes to attract private funds. “The IRP 2025 requires significant investment to be attracted quickly, that will only come from rules-based regulatory reform anchored in law to enable investors to deploy capital in South Africa with confidence and certainty,” Marokane said. Without these fixes, delays could slow progress and keep energy costs high for homes and businesses.
Eskom’s Role in the Transition: From Recovery to Leadership
Eskom, which supplies over 90% of South Africa’s power, sees the IRP as a chance to rebuild and compete in a reformed market. Marokane noted the utility’s recent turnaround: “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 added that renewables need reliable baseload like coal or nuclear to keep the grid stable.
The company returned to profitability for the first time in eight years, thanks to better operations and a skilled team. Eskom is committed to its Generation Recovery Plan, fixing governance, and cutting risks. This aligns with the IRP’s goals, where Eskom will partner with private players to add capacity. Marokane said: “Our return to profitably for the first time in eight years reflects long-term structural operational improvements and combined with our skilled workforce will lead to increasing investor confidence to deliver the IRP 2025 with partners.”
Eskom will publish a full response after reviewing the plan, updating its strategy to support the shift to low-carbon sources while ensuring affordability.
Massive R2.2 Trillion Investment: A Boost for Jobs and Growth
The IRP’s R2.2 trillion price tag is a bold bet on South Africa’s future, covering new power plants, grid upgrades, and green tech. This off-balance-sheet plan—meaning it won’t add directly to government debt—relies on private and international funding. Ramokgopa said it will revive the economy by creating jobs in construction, manufacturing, and renewables.
Key areas include:
- Renewable Energy: Big push for solar and wind farms to cut emissions.
- Nuclear Power: Plans to add nuclear capacity for stable baseload.
- Electric Vehicles and Green Hydrogen: Building supply chains for batteries and fuel cells, using South Africa’s minerals.
- Grid Modernisation: Upgrading lines to handle more renewables and reduce losses.
This investment could create thousands of jobs, especially in rural areas with new projects. It supports the Just Energy Transition Investment Plan, valued at over R1.5 trillion, focusing on fair shifts from coal.
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