South Africa gets $250mn loan for wind, solar power

The loan will help fund the Upington solar park in Northern Cape and the Sere wind farm in Western Cape province
South Africa has signed a $250-million loan deal with the World Bank aimed at adding 200 Megawatts of solar and wind power to the coal-dependent country's grid.

South Africa signed a $250-million (183-million-euro) loan deal with the World Bank on Monday aimed at adding 200 Megawatts of solar and wind power to the coal-dependent country's grid.

The loan will help fund what the World Bank described as two of the largest renewable energy projects in Africa -- the massive Upington in arid Northern Cape province and the Sere wind farm in Western Cape province, 300 kilometres (185 miles) north of Cape Town.

"The agreement signed today is about accelerating development of large-scale renewable energy in South Africa. We are proud to be a partner in supporting South Africa's progress toward a clean energy future," World Bank country director Ruth Kagia said in a statement.

Each project will add 100 Megawatts to the grid, the World Bank said.

State electric utility Eskom currently relies on coal for 35,500 Megawatts -- more than 90 percent of its power generation.

South Africa has pledged to cut that to 65 percent by 2030 by investing in and renewable energy.

But the World Bank came in for criticism last year for lending more than $3.0 billion for a new 4,800 Megawatt coal-fired power plant.

Monday's loan comes from the Bank's fund.

(c) 2011 AFP

Citation: South Africa gets $250mn loan for wind, solar power (2011, November 14) retrieved 18 March 2024 from https://phys.org/news/2011-11-south-africa-250mn-loan-solar.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

South Africa opens bidding for 'green' energy projects

0 shares

Feedback to editors