SA gets EU energy funding boost

2 December 2009

South Africa (SA) has received a loan of €40 million (£36.3 million) to be invested by the FirstRand Bank in renewable power projects.

Focus will be on industrial cogeneration, but support for individual projects promoting energy efficiency or using biomass or landfill gas could also be supported.

According to the European Investment Bank (EIB), this loan is the fourth to be given to South Africa in 2009.

"The EIB works closely with the South African authorities, public bodies, private companies and the financial sector to facilitate investment in infrastructure projects of public interest and private sector support."

Projects currently being considered by the bank are two mini-hydro power stations built at existing dams. At three megawatts, they are estimated to reduce CO2 emissions by a total of 30,000 tonnes a year.

Another clean energy programme to recently get the go-ahead is a wind farm in Tsitsikamma, tipped to produce 40 megawatts of electricity by 2013, according to Business Report.

Category: Energy