AfDB backs Eskom in expanding Southern African Power Pool

14th December 2018 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

The African Development Bank (AfDB) and South African power utility Eskom have signed a loan agreement for nearly R2.9-billion and about $25-million to improve power transmission across Southern Africa.

This project contributes to the realisation of the AfDB’s New Deal on Energy in Southern Africa, one of the bank’s priority development areas, by ensuring capacity to add new connections in South Africa and the rest of the Southern African region.

AfDB Southern Africa bureau director-general Dr Kapil Kapoor says the AfDB and Eskom had a long-standing partnership, through which the bank is supporting the transformation of this critically important utility.

He explains that the financing of the Eskom transmission project will result in a significant strengthening of South Africa’s transmission infrastructure.

“Not only will this improve the reliability and security of electricity supply but it will also allow for the integration of large-scale renewable energy into the transmission network, enhance network capacity for future load growth and ensure a reduction in transmission losses,” he explains.

Building on these successes, the new loan agreement will see the construction of 552 km of transmission lines, comprising 436 km of 400 kV and 116 km of 132 kV, and associated substations across Mpumalanga and KwaZulu-Natal, as well as the upgrade of substation equipment, including earthing systems at various existing substations in Mpumalanga.

Supply Reiability and Security

It is anticipated that this will translate into the integration of distributed generation, mainly large-scale renewable energy, into the transmission network, and ensure reliability and security of supply, reduction of transmission losses, improved regional integration and safety of operations and maintenance personnel.

“We are encouraged by the level of support that we continue to receive from development finance institutions, such as the AfDB, which continues to be a significant partner and a key contributor to the progress achieved by Eskom in the execution of the current capital expansion programme,” Eskom acting CFO Calib Cassim says.