South African utility gets loan for renewable energy projects

South Africa's state-owned power utility Eskom has received World Bank approval for a 250 million U.S. dollars loan for its solar and wind power projects, the South African Press Association (SAPA) reported on Friday. In a media statement, the bank said the loan will help Eskom to implement two of the largest renewable energy projects ever attempted on the African continent. Included in the project are a 100-megawatt solar power plant to be set up in Upington, in South Africa's Northern Cape province, and a 100-megawatt wind power plant in Sere, in the Western Cape province, 300 km north of Cape Town. SAPA reported that the loan was funded by the Clean Technology Fund for low-carbon technologies. Obiageli Ezekwesili, World Bank Vice President for the Africa Region, said by investing in these cutting-edge, transformational solar and wind power projects, the bank helps Africa lead the way in securing a clean energy future. South Africa, host of the Nov.28-Dec. 9 United Nations climate change summit, is committed to reducing carbon emissions and increasing its use of renewable energies such as solar and wind. South Africa relies on coal for more than 90 percent of its current energy supply.