Eskom has welcomed the R9 billion World Bank concessional loan approved for the repurposing of the Komati Power Station, saying it is a “significant step” towards clean energy.
The coal-fired power station was shut down last week after serving the country for at least 60 years, and is set to become SA’s first station to be repurposed into a renewable energy site.
The loan guaranteed by National Treasury comes on the back of growing calls for SA to urgently transform its energy system and elevate renewables.
The integrated energy report − launched recently by the National Business Initiative, Business Unity SA and Boston Consulting Group − details the need for the country to adopt renewables in solving the current energy crisis and realise a just transition.
Commenting on the World Bank loan to fast-track adoption of renewables, Eskom board chairperson Mpho Makwana says: “This is a significant development for South Africa’s Just Energy Transition to renewable energy as it brings the much-needed funding to enable Eskom to train its employees and members of the host communities to empower them to continue playing a central role in the provision of clean energy for the country.
“The loan facility will cover three main components: decommissioning of the Komati Power Station, repurposing and repowering of the station and other elements of the Just Energy Transition, including provision for the training of Eskom employees, community development and stakeholder initiatives.”
The first phase of the repurposing will install 150MW of photovoltaic, 70MW wind generating capacity, 150MW of battery energy storage system and synchronous condenser, according to Eskom.
Eskom CEO Andre de Ruyter adds: “Given the accelerated global movement towards investment in a clean energy transition, there is a need in South Africa to upskill, retrain and develop a workforce to take full advantage of the opportunities presented by this transition.
“To achieve this, Eskom is working with its recognised labour unions and representatives of the host community.”
To this end, De Ruyter says, the power utility’s recent agreement with the South African Renewable Energy Technology Centre to educate, reskill and upskill former Komati Power Station workers, and qualifying surrounding community members, is critical in ensuring they are not left behind in the energy transition.
“This is in line with Eskom’s drive to ensure we prepare our people and have a pipeline of local skills ready for the inevitable transition, which will be just.”
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