The Minister of Public Enterprises, Mr Malusi Gigaba, together with the Minister of Finance, Mr Pravin Gordhan, today signed a USD250 million (approximately R1.9 billion) loan agreement with the representatives of the World Bank to finance Eskom’s renewable energy projects as part of the financing package under the Clean Technology Fund in Pretoria.
The loan facility from the Clean Technology Fund, will be utilised by Eskom to support the design, procurement, construction, supply and installation and commissioning of a 100 Megawatt (MW) Wind Power Plant in Sere in the Western Cape and a 100 MW Concentrating Solar Power Plant in Upington in Northern Cape respectively.
“The Clean Technology Fund loan as administered by the World Bank will act as a catalyst to drive the renewable energy industry towards increased future investment in these technologies in South Africa as well as in the African continent. The loan will further support Government’s drive to create 5 million jobs by 2020 and facilitate the creation of a local renewable energy skills base,” said Minister Gigaba.
The loan will enable Eskom to spearhead the achievement of the long term mitigation strategy objectives of the South African Government to reduce greenhouse gas (GHG) emissions by facilitating the adoption of a cleaner energy mix.
Government’s white paper on renewable energy stipulates a target for the introduction of renewable energy, which equates to a cumulative 10 000 GWh of renewable energy by the year 2013. The target is based on achieving a large portion of the 10 000 GWh from solar water heating as it is the most cost effective and feasible renewable energy production technology to implement.
Minister Gordhan said that South Africa will be at the forefront of renewable energy production in the continent.
“South Africa recognises the need to take a leading role in helping to reduce the impact of climate change through advocating increased efforts to encourage the use of renewable energy for electricity generation. The signing of this loan a few weeks ahead of the COP17 conference in Durban is a clear sign that as Government we are committed to support the implementation of our renewable energy objectives. This will also provide increased opportunities for the renewable energy market space.” says Minister Gordhan.
Enquiries:
Mayihlome Tshwete
Cell: 072 869 2477
Bulelwa Boqwana
Cell: 076 749 1486.
Ministers Gigaba and Gordhan sign World Bank loan for Eskom’s renewable energy projects
