Eskom and the European Investment Bank (EIB) have agreed a new 75 million euro loan for the 100MSW concentrating solar power (CSP) plant at Upington in South Africa’s Northern Cape.
The project is co-financed with the African Development Bank, Agençe Francaise de Développement (AFD), the Clean Technology Fund (CTF), KfW and the World Bank. The EIB has also provided a total of 220 million euros for the neighbouring Ka Xu CSP plant and the final part of the support to be provided through DBSA was agreed in June this year. The agreement also follows the signing of a credit facility agreement with AFD reported by REM in October 2013.
“Eskom is committed to investing in projects that will diversify our energy mix, including renewable resources” said Ayanda Nakedi, Eskom’s Senior General Manager for Renewables. “The potential to deploy CSP technologies on a large scale is promising, and we are pleased to have taken another step forward in funding our Upington solar plant with this loan agreement.”
Pim van Ballekom, European Investment Bank Vice President, added that the bank is looking forward to continued engagement in South Africa under a new mandate agreed earlier in the year. The EIB has provided funding for other projects in Eskom’s capital programme
Over the last five years the EIB has provided more than €24 billion for renewable energy investment around the world and is active both inside and outside the European Union with regard to the provision of finance and expertise for sustainable investment projects.