The World Bank has approved South Africa’s request for funding to repurpose Eskom’s recently decommissioned coal-fired Komati power station in Mpumalanga by using renewables.
The bulk of the $497 million (R9 billion) Komati Just Energy Transition Project will be financed through a $439.5 million (R8 billion) World Bank loan. There is also a $47.5 million (R870 million) concessional loan from the Canadian-World Bank Clean Energy and Forest Climate Facility, and a $10 million (R183 million) grant from the World Bank’s Energy Sector Management Assistance Program.
The plant, which has been operating since 1961, had its final generating unit taken offline at midday on Monday, state-owned power utility Eskom said. The repurposing project will convert Komati into a renewable generation site powered with 150MW of solar, 70MW of wind and 150MW of storage batteries.
It was also hoped that the project would serve as a global reference on how to transition fossil-fuel assets.
"Reducing greenhouse gas emissions is a difficult challenge worldwide, and particularly in South Africa given the high carbon intensity of the energy sector," said World Bank Group President David Malpass.
"Closing the Komati plant this week is a good first step toward low carbon development. We are cognizant of the social challenges of the transition, and we are partnering with the government, civil society, and unions to create economic opportunities for affected workers and communities."
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