The Diplomatic Society

 
  • Increase font size
  • Default font size
  • Decrease font size

KfW finances "green" electricity network in South Africa to the tune of EUR 300 million

8 April 2015

On behalf of the Federal Ministry for Economic Cooperation and Development, KfW Development Bank has committed to granting an FC promotional loan to ESKOM, the state-owned public utility in South Africa, totalling just under ZAR 4 billion (EUR 300 million).

The financing is to help connect solar and wind power plants in particular and also make a substantial contribution to modernising and strengthening the interconnected grid in South Africa. The network integration of renewable energy sources will facilitate an annual reduction of CO2 emissions of up to 5.5 million tonnes.

RELATED: Germany Commits R5,89 billion for Development Cooperation to South Africa

RELATED: Germany sets aside R70m for SA transport project

One of the key projects supported is the grid connection of two power plants, for which KfW had already pledged funding. These are the Kiwano Solar Tower power plant (100 MW) in Upington (FC development loan: USD 100 million) and the Ingula Pumped Storage Scheme in Braamhoek, co-financed by KfW IPEX-Bank (EUR 75 million). "This realignment of the energy supply structure is a key milestone for South Africa in moving away from the dependence on coal-fired power plants towards sustainable power generation. By connecting climate-friendly energy production alternatives, the country – as the biggest CO2 emitter in Africa – is able to make a significant contribution to international climate protection," said Dr Norbert Kloppenburg, Member of the Board of Management of KfW Group.

The reliability of energy supply and sustainability are of paramount importance to the people of South Africa. While the demand for environmentally friendly electricity is increasing in South Africa, the expansion and maintenance of the power grid have lagged behind in recent years. This results in power failures and fluctuations in supply. Thanks to a new investment programme, not only the nationwide transmission and distribution network but also the integration of renewable energy sources operated by private electricity providers will be achieved.

A total of USD 15 billion is to be invested in network expansion until 2022, including USD 3 billion alone on connecting renewable energy sources to the interconnected grid.

The loan was provided to ESKOM in the South African currency (rand) and represents the largest local currency financing facility of KfW Group in a developing or emerging country so far.

On behalf of the German Federal Government, KfW Development Bank has provided around EUR 850 million to South Africa for projects since 1994 (budget funds of around EUR 180 million, KfW funds of around EUR 670 million), especially in the focal areas of climate and energy, preventing violence and healthcare.

RELATED: Celebrating freedom: 20/25 concert in Pretoria

RELATED: Germany provides over R70 million for Violence Prevention in the Western Cape

Commenting on the funding German Ambassador Freitag said, "The announcement by KfW of its support for connecting renewable energy into South Africa's power grid is good news and reflects the very heart of the South African – German Energy partnership. It complements the efforts of both our governments through the partnership towards greater energy efficiency and an increase in renewable energy projects in the country."

Embassy of Germany, Pretoria, South Africa

 


 
 
 
 

_________________________________________________
_________________________________________________

Translater


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6th African Film Week in Athens 13 March 2017 The 6th African Film Week taking place in Greece, brings to the big screen charming images from the African Continent: Urban legends, exoticism from... <|> Early warning centre for South Africa and Nigeria 14 March 2017 South Africa and Nigeria have agreed to establish an early warning centre to help mitigate and monitor possible threats and violence... <|> Abron Band from Iran share peace with music at Tsarogaphoka Primary School by Kgomotso Kgoale 14 March 2017 Kgwebong Consulting, an Organisation Development company that is dedicated to the... <|> Arctic Council at 20: Making a Difference Regionally By Srimal Fernando, Global Editor, The Diplomatic Society  We all know the temperatures are rising in the Arctic twice as fast as the... <|> Marrying of two iconic World Heritage Sites: South Africa’s Robben Island and Mauritius’ Le Morne Cultural Landscape 20 March 2017 Robben Island World Heritage Site (RIWHS) and Le Morne... <|> Easing travel regulations between South Africa and Kenya 3 May 2016 South Africa and Kenya have announced measures that will make travelling between the two countries easier. South African Home... <|> Freedom Park pays tribute to Sweden 21 March 2017 Human Rights Day is a significant day to South Africans for remembering not only the 69 people, who were killed during the Sharpeville Massacre,... <|> The SADC We Want 19 March 2017 President Jacob Zuma was among the regional leaders who participated in the Southern African Development Community (SADC) Extraordinary Summit of Heads of State and... <|> Coschem Creativity Award presented to Surinamese... <|> The Smurfs and the United Nations: Teaming up for a happier, more peaceful and more equitable world 20 March 2017 The popular Smurfs characters are encouraging children, young people and adults to... <|>
© copyright 2011-2017| The Diplomatic Society| All Rights Reserved.