View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 22, 2021

South Africa seeks financing to shift from coal power generation

At present, 80% of the electricity in South Africa is generated by burning coal.

By Umesh Ellichipuram

South Africa is reportedly seeking funding of ZAR400bn ($27.3bn) to set up an electricity infrastructure as it plans to shift away from coal-based power generation.

Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

Reuters reported that the nation would require funding of more than ZAR180bn to set up clean power generation assets and ZAR120bn for transmission equipment.

It also plans to build transformers, distribution technology and substations using funding from developed countries and financial institutions.

In a presentation, South Africa Presidency official Rudi Dicks said that the country is only seeking enough money to build 7GW of renewable power capacity.

This capacity would come from sources such as natural gas, wind and solar, which would replace the decommissioned coal units.

Dicks’ presentation also said that the country needed low-cost loans and grants to expand its transmission grid, strengthen its distribution corridors and set up a fund to expedite economic diversification in coal-intensive areas.

Dicks said: “We are prepared to make a substantial carbon reduction, but this must be financed by developed countries on concessional terms.”

At present, 80% of South Africa’s electricity requirements are met by burning coal.

The South African government has set an emissions reduction target and expressed its intent last month to climate envoys from France, the US, Germany and the UK.

It said that ‘huge’ financial support would be required to shift away from coal.

The country’s electricity utility, Eskom, also plans to move away from coal and is seeking up to ZAR180bn in funding from lenders worldwide.

In August, Eskom announced plans to reduce its coal-fired power capacity from 20GW to 12GW by closing power plants over the next decade. This would lead to a 30% reduction in the company’s total capacity.

Eskom plans to close its Komati power station in Mpumalanga by next October and repower it with solar photovoltaic power and 244MWh of battery storage.

Related Companies

Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology