Loan agreement to facilitate grid of renewable energy signed

June 29th, 2018, Published in Articles: EE Publishers, Articles: Energize

Phakamani Hadebe

Eskom and KfW, the German Development Bank on behalf of the German Government, have signed a US$100-million (approximately R1,35-billion) loan facility to support further investments in the transmission network in the Northern Cape in order to facilitate the grid integration of renewable energy independent power producer (IPP) projects under the recently-signed power purchase agreements (PPAs). This cooperation has been agreed upon by the two governments.

This funding will also allow for the continuation of the second phase of capacity and reliability improvements in the areas of Harrismith in the Free State and the greater East London region in the Eastern Cape; these projects will largely enhance network reliability and load-growth.

The signing of this loan facility is a positive contribution towards the successful execution of the power utility’s R72-billion funding requirement for the 2018/19 financial year. The loan forms part of the first new funding that Eskom intends signing with Developing Finance Institutions (DFIs) in this financial year.

Phakamani Hadebe, Eskom’s Group Chief Executive, says the successful conclusion of this agreement between Eskom and KfW validates the bank’s continued commitment towards the power utility and is an indication of the strong partnership and cooperation between the two entities.  According to Hadebe, this facility demonstrates the improved market sentiment and confidence in the ability of the power utility’s leadership to direct the company on the correct path to recovery and sustainability. Furthermore, integrating more renewable sources of energy into the grid will go a long way in helping to reduce South Africa’s CO2 emissions, driving Eskom towards it’s targeted goals, he says.

Contact Eskom, Tel 011 800 3304, mediadesk@eskom.co.za