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TARIFF HEARINGS
Eskom in advanced talks with World Bank for $3,7bn loan
 
21st January 2010
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South Africa's coal-heavy power utility Eskom was in advanced discussion with the World Bank to secure a $3,7-billion loan for its capital programmes, including $500-million for a concentrated solar power plant (CSP).

Speaking at the National Energy Regulator of South Africa's public hearings in Midrand on Thursday, acting chairperson and CEO Mpho Makwana said that the negotiations were at an advanced stage.

Eskom MD corporate services Dr Steve Lennon revealed that the initial CSP facility would have a capacity of 100 MW and would be used by the utility to prove the technology.

The plant would be built in the Upington area of the Northern Cape, where a site had been identified and secured.

Part of the capital cost would be funded using money flowing from the Clean Technology Fund, administered by the Washington-based institution, and the balance directly from the bank.

Lennon noted that Eskom was convinced that there were many other solar prospects that could be pursued by the utility and independent power producers.

 

 

Edited by: Creamer Media Reporter
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It is very surprising that WB enters into these negotiations regarding ESKOM new build without a long term energy mix framework being finalized by the Gov. How the Government through its IRP could already decide the exact new generation through Eskom and lock us with this long term investment and GHG producer for decade, while it does not know how the generation mix, RE IPP part/ investment should be. These WB discussions and Eskom hearing should therefore be postponed until a clear and long term picture is defined, taking appropriately into account GHG decrease commitments, peak oil and related need of RE/EE development with related job creation. Such large WB loan with deep Fossil Fuel implications can not be considered on a so flimsy long term planning. Deep contradictions/conflicts of interests should also be cleared regarding Eskom monopoly of electricity generation with coal for share holders interest to be in charges of RE generation (hence decreasing its coal revenue), checking on IPP competitors, planning on behalf of the Gov for the sake of the majority……… Conflict of interest regarding ANC investing arm embroiled in Eskom new constructions should also be resolved in order to be able to objectively design the require mix long term energy plan. The energy field would be much easy to work on as soon as these conflicting interests will be cleared. A broader information/mobilization campaign should be launched in order to succeed a meaningful share holder consultation process as well as obtain the necessary buy in of the majority. Regards PL
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Pierre_LOuis Lemercier Renewable Energy Centre Port Elizabeth on 22 Jan 10