South African power utility Eskom has secured loans from the African Development Bank (AfDB) to build two new renewable energy projects. The loans, which total US$365 million, are guaranteed by the South African government and will be used to build separate PV and wind power systems – the first utility-scale developments in Eskom's history.
Eskom caters for virtually all of South Africa’s energy requirements and 90% of its power stations are coal-fired. These new projects are part of an attempt to reduce its carbon footprint by diversifying its energy portfolio and, in turn, combating the dual problems of tight supplies and rising demand.
“We are committed to a cleaner energy future and we now have the capability to implement our large-scale wind and solar generation projects,” Eskom CEO Brian Dames said. “We appreciate the roles the African Development Bank and the South African government have played in making this possible.”
“The AfDB is committed to supporting South Africa's long-term plans for moving to a lower carbon growth path. Leveraging and accelerating the disbursement of concessional climate financing is essential to achieve economic viability of some of the clean technology solutions. This is a priority action area for the AfDB,” AfDB president Donald Kaberuka added.