Connect with us

Hi, what are you looking for?


Green Economy

$339 Million Loan To Help South Africa Integrate Renewable Energy Into Its Grid

The global renewable energy market is abuzz with the recent announcement of results of the fourth round auction of projects under South Africa’s Renewable Energy Independent Power Producers Procurement Programme. But the real impetus for these and future auctions is related to a crucial development in South Africa’s electricity sector.

Cahora Bassa (HVDC) Transmission Line South Africa Mozambique

Cahora Bassa (HVDC) Transmission Line at Kruger National Park, South Africa

Bidding for the fourth auction closed on 18 August 2014, but the results were delayed by about 8 months because the government could not allocate projects to successful bidders as the country’s power utility Eskom expressed its inability to provide transmission grid access to the new renewable energy projects.

The government finally went ahead with announcing the fourth round auction results after Eskom closed a $339 million financing deal with KfW for upgrading the transmission network.

As with many other countries, South Africa is also facing problems with integrating renewable energy projects into the transmission grid. The problem is aggravated as the Ministry of Energy is conducting auctions after a gap of only a few months. And since the gestation period of renewable energy projects is short, several of these projects would be commissioned within a few months of one another.

But this 8 month gap could be a blessing in disguise as Eskom would get some time to accommodate fourth round projects into its grid. The financing deal would also help Eskom increase transmission capacity for the over 6 GW of fresh renewable energy capacity set to be allocated in the future auctions of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).

Through the first 4 auctions under the REIPPPP South Africa managed to allocate 5,443 MW capacity, mainly in the form of wind and solar power projects. A total number of 79 projects have been allocated to some of the leading national and international project developers.

Image Credit: NJR ZA | CC-BY-SA 3.0

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

Smiti works as a senior solar engineer at a reputed engineering and management consultancy. She has conducted due diligence of several solar PV projects in India and Southeast Asia. She has keen interest in renewable energy, green buildings, environmental sustainability, and biofuels. She currently resides in New Delhi, India.


You May Also Like

Clean Power

Cape Town is the first city in South Africa to offer households and businesses cash for their excess rooftop solar power. The City is...

Clean Power

The Shoprite Group is accelerating the rollout of rooftop solar installations at its sites across South Africa. The Shoprite Group is South Africa’s largest...


Battery electric vehicles (BEVs) such as the Ora Good Cat (also known as the Funky Cat) are now being offered in several markets around...

Clean Transport

Woolworths, which is popularly known as “Woolies,” has become the first South African retailer to embark on an extensive rollout of electric panel vans...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.