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Cape Town - Eskom's planned solar farm in Upington could cost up to R150bn and would need a huge private capital injection, government spokesman Themba Maseko said on Thursday.
He said a site had been identified in the Northern Cape town and a feasibility study could be concluded by month's end, paving the way for an investors' summit to test private interest in the project.
"At this stage the feasibility is not yet complete," Maseko told a media briefing on cabinet's regular fortnightly meeting on Wednesday.
"A site has been identified in Upington, largely because of its geographic location and the amount of sun that is available, the nature of the land available in that part of the country, so all of those factors were taken into account.
"The idea is that the park will include a variety of technologies that are available for the sector. Those will be presented to an investors' conference to see the appetite of the
investors to actually support an initiative of this nature."
Maseko added that initial indications put the estimated price of the alternative energy project at "up to R150bn".
"So in making the final decision government is going to have to look at all the various possibilities. But it is clear that it is going to have to include a huge chunk of investment from the private sector."
A solar farm was expected to spawn support industries, creating a wealth of job opportunities.
"The possibilities for massive job creation in that area is something that is of great interest to government, but at this particular point in time, we are still talking about a report that is still being finalised."
Maseko said a final report could be ready at the end of September.
The Upington solar power project and a wind farm at Sere, some 160 kilometres north of Cape Town, had been lying dormant for lack of funding.
But the two projects received nearly R2bn in International Bank for Reconstruction and Development funding as part of the $3.75bn World Bank loan to Eskom approved earlier this year, putting both back on the drawing board.
He said a site had been identified in the Northern Cape town and a feasibility study could be concluded by month's end, paving the way for an investors' summit to test private interest in the project.
"At this stage the feasibility is not yet complete," Maseko told a media briefing on cabinet's regular fortnightly meeting on Wednesday.
"A site has been identified in Upington, largely because of its geographic location and the amount of sun that is available, the nature of the land available in that part of the country, so all of those factors were taken into account.
"The idea is that the park will include a variety of technologies that are available for the sector. Those will be presented to an investors' conference to see the appetite of the
investors to actually support an initiative of this nature."
Maseko added that initial indications put the estimated price of the alternative energy project at "up to R150bn".
"So in making the final decision government is going to have to look at all the various possibilities. But it is clear that it is going to have to include a huge chunk of investment from the private sector."
A solar farm was expected to spawn support industries, creating a wealth of job opportunities.
"The possibilities for massive job creation in that area is something that is of great interest to government, but at this particular point in time, we are still talking about a report that is still being finalised."
Maseko said a final report could be ready at the end of September.
The Upington solar power project and a wind farm at Sere, some 160 kilometres north of Cape Town, had been lying dormant for lack of funding.
But the two projects received nearly R2bn in International Bank for Reconstruction and Development funding as part of the $3.75bn World Bank loan to Eskom approved earlier this year, putting both back on the drawing board.
