The New Development Bank (NDB) and South African utility Eskom have signed off on a loan agreement for renewable energy Integration and a transmission augmentation project. As part of the deal, the NDB will provide a loan with sovereign guarantee to Eskom for a total of US$180 million.
South African utility Eskom and German Development Bank KfW have signed a US$100 million (~R1.35 billion) loan facility that will go towards improving the transmission network to support grid integration of renewable energy projects after 27 power purchase agreements (PPAs) were signed in April.
Breaking up Eskom’s monopoly in South Africa’s power market is not the answer to signing the outstanding PPAs under the country’s renewable energy procurement programme, a representative from the Department of Energy (DOE) has said.
The National Energy Regulator of South Africa (NERSA) has launched an investigation into Eskom’s ongoing refusal to sign outstanding PPA contracts under the country’s renewable energy procurement programme (REIPPPP).
South African utility has failed to meet the deadline imposed by the country’s previous minister of energy for the financial close of outstanding PPAs under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
South African utility Eskom is defying the injunction of president Jacob Zuma by attempting to negotiate tariffs with preferred bidders as opposed to signing existing PPAs outright, according to the South African Renewable Energy Council (SAREC).