Fin24

Eskom secures more green energy funding

2011-11-14 11:09

Pretoria - Power utility Eskom signed a loan for about R1.9bn on Monday that will finance the building of South Africa’s largest solar energy and wind power generation projects.

Signing the guarantee, Finance Minister Pravin Gordhan said South Africa had “a huge comparative advantage” when it came to solar power generation.

Public Enterprises Minister Malusi Gigaba said the loan was an indication that there was “great investor confidence in South Africa".

The 40-year loan, signed in Pretoria, will help finance the building of a 100 megawatt solar power plant near Upington and the 100 MW Sere wind farm near Vredendal in the Western Cape.

The 200 MW capacity of the two power plants could generate enough electricity to power 200 000 homes.

Eskom chief executive Brian Dames said the wind farm would be completed by 2013 and the the solar farm a year later in 2014.

Repayments on the loan will start in 10 years. It is expected to be paid off over the following 30 years at an interest rate of 0.25% annually on the amounts dispersed.

The loan was approved by the World Bank on October 27 and comes from its clean technology fund.

Eskom has already received more than R700m from the African Development Bank for the two projects, which will be the largest  in South Africa.

The loans are being guaranteed by the South African government.

It is hoped that each project will reduce South Africa’s carbon emissions by five million tonnes a year.

Comments
  • happyskippy - 2011-11-14 11:28

    Excellent!!!!

  • happyskippy - 2011-11-14 11:31

    I would like to know what is the long term plan with using renewable resources of energy and what would be maximum target megawatts

  • 88Sky88 - 2011-11-14 11:39

    Guess how much of this money will be wasted/paid on extravagant bonuses…Guess who will end up paying for this loan...Jip Electricity will go up again.........

  • LoveMsg - 2011-11-14 11:41

    i just hope its another contract that won't end up like the etoll gates!!! And we the general public have to pay unreasonable amounts of monies to pay off the loan.

      88Sky88 - 2011-11-14 11:49

      Ja dis Eishkom learnt how to milk us...

      100003049926762 - 2011-11-14 12:13

      I drove past the site over the weekend and I can tell you there is an abundence of sun there and some more.

  • 100001887938210 - 2011-11-14 12:23

    Tender opportunity

  • haroldrvjansen - 2011-11-14 12:47

    How much money has ESKOM loaned by know? Is anybody keeping a tab? In a time when we need to monitor our debt, ESKOM seems to have an unlimited capability of borrowing money. I just wonder who is going to pay back all of this money? Maybe a toll-fee on electricity distribution?

  • spookhuis - 2011-11-14 12:56

    But didn't Zuma just sign an agreement with Congo for a 4000 mega watt hydro deal? left hand, right hand......no 'kin clue.

  • Mynkaptein - 2011-11-14 13:03

    @88Sky88 if we could use that chip on your shoulder to supply electricity it could save the entire world. Obviously we'll pay for the loan, that is how business work. But this is a step in the right direction. Eskom needs to generate cheaper power and this is a good enough way of doing it. And upington is an excellent location for the solar panels. It is already hellishly hot there, so the environmental impact of the panels will not be to much and there are mines there that can use the power. It will be worth the investment for one of the mines to conduct a similar project once this one is completed.

      88Sky88 - 2011-11-14 16:43

      Mynkaptein, you must be an employee of one of the 'mines' you are talking about. Do you know how much money was used to bail out Eishkom in recent years? Did we get anything back from our investment? Do you know what bonuses CEO Brian Dames and chief financial officer Paul O’Flaherty got this year? So, before you mouth off in the future do a bit of research please. To start you off, here's a link: http://mg.co.za/article/2011-06-27-eskom-executive-committee-paid-109-more-in-2011

  • 100003085044662 - 2011-11-14 14:30

    Here we go again. Someone needs to shut down this utility black hole, or privatize it, because the way it's being run now is ridiculous! If they pay out bonuses this year along with putting the tariffs up I am for sure organizing and Occupy Megawatt Park

  • Ian - 2011-12-11 23:15

    Is it possible that there is a rebate for getting off the grid. We use less than 800 kw hours a month but two thirds of our account is for service and network charges

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