AfDB to fund South African power plant projects
1 June 2011
Two power plant projects in South Africa are to receive funding from the African Development Bank (AfDB), it has been revealed.
The financial institution is loaning Eskom some $365 million (£222.2 million) to build the 100 MW Concentrated Solar Power Plant and the 100 MW Wind Power Plant.
Both projects form part of Eskom's plan to address South Africa's commitment to carbon reduction and clean energy, Times Live reported.
"Having received firm government support, work is ongoing to find sources of funding to further strengthen Eskom's balance sheet without placing undue pressure on the fiscus," public enterprises minister Malusi Gigaba said.
Eskom's core responsibility is to ensure the security of electricity supply until new capacity was built.
Meanwhile, GCube, the insurance provider, and South African underwriter C&G have formed a partnership for new renewable energy projects in the country, Renewable Energy Focus has reported.
South Africa hopes to have 42 per cent of new power projects from renewable energy.