R230 billion loans to help connect Cape Town to the grid

by MMC
0 comment

Eskom Holdings SOC Ltd will use part of multilateral loans of $12.5 billion (about R230 billion) to provide electricity to areas where the grid is overloaded and hinder the transition to renewable sources, says its new minister electricity.

Expanding the country’s transmission network will significantly help end power outages and is crucial for bringing renewable energy projects online, South African Electricity Minister Kgosientsho Ramokgopa said on Sunday .

“We now know that transmission capacity has been exhausted in these areas,” he told a press briefing.

ADVERTISEMENT

CONTINUE READING BELOW

“And that undermines our ability to connect renewable energy projects.” This reserve of money will help us access it.

South Africa needs about 390 billion rand ($21.3 billion) to boost its transmission capacity and connect renewable energy projects in parts of the Northern Cape, Eastern Cape and the national grid to the national grid. of the Western Cape, the minister said.

Listen to read:
New report reveals profiteers from South Africa’s energy crisis
Colin Coleman’s solutions for SA
Ramaphosa plans more powers for electricity tsar
Eskom launches largest battery storage project in Africa

Eskom’s performance has steadily deteriorated in recent years, leading President Cyril Ramaphosa to declare an energy crisis, step up electricity purchases from private producers and appoint a power minister for the first time in March.

Due to transmission constraints, many renewable energy companies have included options in their business models to raise funds for grid expansion, Ramokgopa said in response to questions from Bloomberg.

“There is an insatiable appetite,” he said.

© 2023 Bloomberg

You may also like

Leave a Comment

The news website dedicated to showcasing Africa news is a valuable platform that offers a diverse and comprehensive look into the continent’s latest developments. Covering everything from politics and economics to culture and wildlife conservation

u00a92022 All Right Reserved. Designed and Developed by PenciDesign