South Africa's state-run power utility Eskom aims to transition from its coal-heavy energy mix to predominantly clean energy sources by 2040, with a goal of expanding renewable capacity from less than 1 GW today to 32 GW, Reuters reported, citing a presentation by the company.

Meanwhile, Eskom intends to scale down coal-fired capacity from 39 GW to 18 GW, showed the presentation on its energy sources to lawmakers.

The utility plans to achieve this by replacing obsolete coal generation units with renewable or gas-fired alternatives, as well as launching new clean energy projects. Several coal stations slated for decommissioning have already been identified for conversion.

Eskom will establish an internal renewable energy business unit to implement projects and collaborate with private sector partners.

Nevertheless, the company's debt load of 400 billion rand ($22.31 billion) remains a constraint on energy transition and its investment in renewables. Compounding this are rising debts owed to it by municipalities, and regulatory uncertainty over electricity tariffs, currently set below the level required to cover operational costs.