The World Bank has approved a $3.75bn loan to South Africa’s power utility, Eskom, to support its energy security plans.
The Eskom Investment Support Project (EISP) will provide $3.05bn for completing the 4,800MW Medupi coal-fired power station and $260m for piloting the 100MW Sere wind farm and a 100MW concentrated solar power project.
The loan will also cover $485m for low-carbon energy efficiency components including a railway to transport coal with less greenhouse gas emissions.
The project aims to help the country towards a low-carbon future by investing in large-scale renewable energy projects and catalysing the renewable energy industry across Africa.
South Africa plans to save over 3,000MW of electricity through demand-side management by 2013 with support from private sector investment and aims to mobilise expensive renewable energy technologies for wide-scale adoption.