- Eskom has secured a US100 Million loan from the German Development Bank KfW.
- The funding will be used to upgrade and expand transmission infrastructure for renewable energy project grid integration.
- The move is another indication of growing investor confidence in South Africa’s Renewable Energy Independent Power Producer Program.
In a statement released by Eskom on Friday 29th June 2018, Eskom confirms that the funding would go towards to the second phase of capacity and reliability improvements in Harrismith, Free State, and the greater East London region in the Eastern Cape. “These projects will largely enhance network reliability and load-growth,” the statement read.
The additional loan facility forms part of Eskom’s R72bn funding requirement for the 2018/19 financial year which was approved by the new board earlier in April this year.”The successful conclusion of this agreement between Eskom and KfW validates the bank’s continued commitment towards Eskom and it is an indication of the strong partnership and co-operation between Eskom and KfW,” said group CEO Phakamani Hadebe.
He adds “The facility demonstrates the improved market sentiment and confidence in the ability of the Eskom leadership to direct the company on the correct path to recovery and sustainability.”
Eskom recently signed off on 27 renewable energy projects in the aftermath of a failed court bid by NUMSA, a local workers union, to have the projects blocked. NUMSA cited massive job losses in the coal industry if the renewable energy projects were to go ahead.
Author: Bryan Groenendaal