The European Investment Bank (EIB) declared that it has inked a new
75 million (R1.1 billion) finance contract with South African utility
company Eksom to assist Eskom s 100MW Concentrating Solar Power (CSP)
plant near to Upington in the Northern Cape.
CSP uses a number of innovative technologies to concentrate the sun
s energy through large mirrors and utilises the concentrated thermal
energy to produce steam to drive a conventional steam turbine for
electricity generation. CSP technology is similar to conventional power
plants in that steam is used to power a turbine and generator, but the
fossil fuel combustion is replaced with free, non-polluting solar
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
The EIB is a valued partner who plays a key role in the funding of
not only the CSP project, but has also provided funding for other
projects in Eskom s capital programme, said Eskom s Finance Director, Ms
The African Development Bank (ADB), French Development Agency
(AFD), Clean Technology Fund (CTF), TKfW and the World Bank have
co-financed this project.
For the neighboring Ka Xu CSP plant, the EIB has also provided a
total of 220 million. The last part of this support will be offered
through DBSA was agreed in June this year.
Energy is essential for economic activity and investment in new
renewable energy generation capacity can harness South Africa s natural
resources, said Pim van Ballekom, EIB Vice President, The European
Investment Bank is pleased to work with Eskom to support the CSP plant
that will act as a model for similar schemes elsewhere and looks forward
to continued engagement in South Africa under a new mandate agreed
earlier this year.
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