Public Management

African Development Bank approves a ZAR 3 billion loan to bolster renewable energy in South Africa

African Development Bank approves a ZAR 3 billion loan to bolster renewable energy in South Africa
Friday, 30 November 2018 16:57

The Board of Directors of the African Development Bank has approved a senior loan of ZAR 3 billion to the 100 MW Redstone Concentrated Solar Power Project, which is expected to boost South Africa’s energy mix and hasten transition to renewable energy.

Located in the Humansrus Solar Park, Northern Cape Province of South Africa, the solar power project is expected to generate 466 GWh/year. This will offset diesel-fueled Open Cycle Gas Turbine’s (OCGT’s) operating at peak demand, thereby avoiding and mitigating carbon dioxide (CO₂) emissions from fossil fuels.

The project will also improve South Africa’s power supply and access to energy, and green the energy mix which is currently dominated by coal at 82%.

Commenting on the importance of the project, President of the African Development Bank Akinwumi Adesina said “there is no other country – that has made bold efforts at promoting solar power – apart from South Africa and Morocco. Of the countries currently using coal, South Africa is one of the few with an aggressive strategy towards developing a solar-based power. At the heart of this transition to a low-carbon energy sector is a complete transformation of the future energy mix.”

The project is one of 27 renewable energy Independent Power Producer projects under the Renewable Energy Independent Power Producer (REIPPP). Once commissioned, it is expected to create over 3500 jobs over the project life cycle. The project will also fulfil South Africa’s social development requirements on citizens employed, Black Economic Empowerment, procurement from small and medium-scale enterprises, local content, and shareholding by local communities.

“The development of this concentrated solar power project will provide green baseload energy and contribute to a further diversification of South Africa’s energy mix, which is fundamental to South Africa’s strategic vision of transitioning to green growth”, said Amadou Hott, the Bank’s Vice-President for Power, Energy, Climate, and Green Growth.

The project comprises a 12-hour molten salt thermal energy storage system, which will enable the project to meet peak electricity demand in the absence of sun, and allow for dispatchability to adapt generation to electricity demand. The project will also involve the construction of a new 132 kV switching station, and a 34 km long single circuit 132 kV transmission line.

This Project is aligned with the Bank’s Ten-Year Strategy, The New Deal for Energy in Africa under the Hi5 Priority to ‘Light Up and Power Africa’, and the South Africa Country Strategy Paper (CSP 2018-2022), which supports economic transformation for inclusive growth and job creation.

The project is also fully in line with the Bank’s green growth strategy, energy strategy and private sector development strategy to finance clean renewable energy projects, increase access to energy, and reduce dependence on carbon intensive power generation.

The project makes a significant contribution to efforts of the South African government to implement its nationally determined contribution (NDC) by pursuing investments in renewable energy and energy efficiency in order to mitigate CO₂ emissions.

26444 in Agency Amadou Hott 

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Central African Republic seeks $12B for 2024-2028 development plan• 58 projects target agriculture, mining, energy, transport, and health• Goal:...
• S&P Global Ratings lowered Botswana's sovereign credit rating to BBB from BBB+, maintaining a negative outlook.• The downgrade stems from collapsing...
• Only six of Nigeria's 13 listed banks currently meet the Central Bank of Nigeria's (CBN) new recapitalization requirements.• The CBN significantly...
• Kenyan lender Equity Bank has initiated steps to enter the Ethiopian banking market, recently opened to foreign investment.• Ethiopia offers a market of...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...

WAEMU Region Records Second Straight Month of Deflation, at -0.9% in July 
03

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
04

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
05

As a relatively small issuer in the West African Economic and Monetary Union (WAEMU) market, Benin i...

How Benin, a Small West African Nation, Became a Darling of Regional Debt Markets
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.