AfDB Invests in Solar and Wind Power in Sub-Saharan Africa
6 June 2011: The African Development Bank (AfDB) is providing a US$365 million loan to South Africa to support its national electricity utility, Eskom, in implementing a US$1.3 billion renewable energy project to introduce concentrated solar power to sub-Saharan Africa and the first utility-scale wind power plant to South Africa.
The financial deal includes a loan of US$265 million approved by the AfDB's Board of Directors, as well as a US$100 million concessional loan from the Clean Technology Fund. AfDB is also providing transfer of knowledge on how to design and manage wind and solar projects. The loan to Eskom will enable the development of a 100MW concentrated solar power plant at Upington and a 100MW Sere wind farm near Koekenaap in the Western Cape. These projects will allow South Africa to increase the weight of clean energy to 42% by 2030 as planned in its Integrated Resource Plan. The AfDB loan also aims to help catalyze greater investments in green energy in the near future. [AfDB Press Release]