BERLIN: Fresh hope for embattled power utility Eskom, as Germany’s state-controlled development bank KFW grants it a 4 billion Rand loan.
The loan said to be the biggest single credit ever granted by the German bank in a local currency to any developing or emerging nation – will help modernise Eskom’s power grid.
KFW announced that the loan will be used to connect solar and wind power plants to Eskom’s power network and help secure supply.
Management board member at KFW, Norbert Kloppenburg, said the adjustment of the energy supply is a big step for South Africa away from dependency on coal – towards a more sustainable electricity generation.
Kloppenburg said integrating more renewable sources of energy into the grid will also help reduce South Africa’s C02 emissions by up to 5.5 million tonnes per year.
Eskom has implemented rolling blackouts over the past year, as its grid struggles to meet the growing demand.
