South Africa – African Development Bank approves $ 57.67 million loan to Eskom to boost power generation from renewable sources
The Board of Directors of the African Development Bank has approved a loan of $ 57.67 million to Eskom Holdings SOC Ltd, South Africa’s electricity utility – and Africa’s largest – to operate battery storage technology that will increase electricity production from reliable and efficient renewable energy sources. .
The Bank’s financing, a concessional loan, will come from the Clean Technology Fund, a multi-donor trust fund under the Climate Investment Funds. The pioneering battery energy storage system project is co-financed with the World Bank and the New Development Bank.
The project involves the development of 200 MW of battery storage with four hours of energy storage capacity per day, or 800 MW in total, at seven sites in the South African provinces of Western Cape, Northern Cape, South Africa. Eastern Cape and KwaZulu-Natal.
Once in service, Eskom will be able to distribute electricity from variable renewables that would otherwise have been wasted, reducing reliance on electricity produced from fossil fuels at peak times of the day.
African Development Bank Acting Director for Renewable Energy and Energy Efficiency Dr Daniel Schroth said: -Carbon production capacity and new technologies such as battery storage. It comes at a critical time as the world prepares for action at COP26. “
The large scale battery storage project, the first of its kind in Africa, is expected to help reduce CO2 emissions by up to 0.292 million tonnes. It will also inform the deployment of similar projects across the continent. Many African countries are implementing an energy transition as they strive to meet the goals of net zero emissions.
The project also contributes to the ambitious nationally determined contribution of South Africa, within the framework of compliance with the Paris climate agreement.
The $ 5.4 billion Clean Technology Fund promotes low-carbon technologies with significant long-term greenhouse gas reduction potential. The African Development Bank has been an implementing entity of the Climate Investment Fund since 2010.
Olufemi Terry | Communication and External Relations Department | African Development Bank | email: [email protected]
Technical Contact: Antony Karembu, Senior Renewable Energy Specialist, Renewable Energy Division, African Development Bank, email: [email protected]