Eskom signs renewable energy loans

Johannesburg - Power utility Eskom has signed two loan agreements worth a total of $365m with the African Development Bank (AfDB) for clean energy projects.

Eskom said in a statement late on Sunday that the loans would "enable the first large-scale implementation of renewable wind and solar generation in Eskom's history".

Eskom, which provides virtually all of South Africa's power, is keen to reduce its carbon footprint.

Over 90% of its generation is coal-fired.

The utility also wants to diversify its energy base as it struggles to keep the lights on in the face of tight supplies and rising demand. Rolling blackouts in 2008 cost the world's largest platinum producer billions of dollars in lost output.

Eskom also said it hopes to begin construction of its planned Sere 100 megawatt wind project in the Western Cape early next year.

The loans are guaranteed by the South African government and were signed on the sidelines of World Bank/International Monetary Fund meetings in Washington.