Eskom has signed a USD 180 million loan agreement with the New Development Bank (NDB) to expand South Africa’s renewable energy efforts.
The loan agreement for the Renewable Energy Integration and Transmission Augmentation Project will be used to support the development of modern grid connection infrastructure for renewable energy projects as well as augmentation of the Eskom transmission network.
This is considered vital for the development of renewable energy projects in order to reduce the country’s reliance on fossil fuels and increase electricity supply to targeted areas for sustainable development. The project is expected to integrate a total of 670 MW of renewable energy into the Eskom’s grid.
“The successful conclusion of this inaugural transaction with NDB will significantly contribute towards driving Eskom’s goals to reduce South Africa’s CO2 emissions. Eskom welcomes the support from NDB and we look forward to fostering a valuable partnership with this organisation whose mission is to enhance infrastructure for sustainable development in its member countries,” said Eskom CFO Calib Cassim.
Mr. Xian Zhu, COO of the NDB added that the Renewable Energy Integration and Transmission Augmentation Project aligns with the Bank’s focus on projects that incorporate sustainability from their inception. “We are happy to support this important project that will contribute to the development of grid connection infrastructure in South Africa and support the shift to a more sustainable energy path in the country,” he said.