Power Generation

South Africa receives major boost to renewables and efficiency efforts

South Africa is set to benefit from a major investment of $500 million from the Clean Technology Fund (CTF) and €40 million from the European Investment Bank (EIB) to promote renewables and energy efficiency.

The CTF, which is a trust fund supported by Australia, France, Germany, Japan, Spain, Sweden, the UK and US and administered by the World Bank, provides financing for the demonstration, deployment and transfer of low-carbon technologies.

The $500 million will be focused on efforts to convert half a million households to solar water heating over the next five year and increasing the finance available for energy efficiency projects.

Eskom, the South African public electric utility, will also be supported in its plans to build the region’s first concentrated solar power (CSP) plant and the 100 MW Western Cape Province wind farm.

“Many of our citizens struggle to get access to the most basic of energy services; this plan allows us to help them move directly into a new era of energy access based on the principle of low-carbon growth and development,” says South Africa’s environment minister Buyelwa Sonjica.

Meanwhile, the EIB is providing FirstRand Bank with a €40 million loan to support energy efficiency and renewables projects, particularly those in industrial cogeneration, using waste or landfill gas for heat and power generation and improving the energy efficiency of residential, public or commercial buildings.

Other projects that could receive support include plans for two 3 MW mini-hydropower facilities at existing dams in rural areas of South Africa.

“This loan is part of the European Investment Bank’s continued strong commitment to promoting economic development across South Africa,” said Plutarchos Sakellaris of EIB.

For further information:
www.worldbank.org/
www.eib.org/index.htm

01 December 2009

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