The World Bank has granted South Africa‘s request for money to use renewable energy sources to repurpose Eskom’s recently shut down coal-fired Komati power facility in Mpumalanga.
A $439.5 million (R8 billion) loan from the World Bank will provide the majority of the funding for the Komati Just Energy Transition Project, which will cost $497 million (R9 billion). A $10 million (R183 million) grant from the World Bank’s Energy Sector Management Assistance Programme and a $47.5 million (R870 million) concessional loan from the Canadian-World Bank Clean Energy and Forest Climate Facility are also included.
According to state-owned power utility Eskom, the plant’s final generating unit was shut down at noon on Monday. The facility has been in operation since 1961. Komati will be transformed into a renewable generation facility with 150 MW of solar, 70 MW of wind, and 150 MW of storage batteries thanks to the repurposing project.
Additionally, it was intended that the initiative would act as a global guide for converting 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 cognisant 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.”
The air quality in the vicinity of the plant is anticipated to improve as a result of the decommissioning.
“This project is critical to our understanding of the sustainability of decommissioning, repurposing, and mitigating the socioeconomic impacts for workers and communities before we scale up the move of the power sector into a low-carbon path,” Public Enterprises Minister Pravin Gordhan said.
“It is part of implementing the country’s Integrated Resource Plan 2019 to gradually retire 12GW of our old and inefficient coal-fired power fleet by 2030 and to scale up private sector-led renewables of 18GW during the same period.”
As part of the project, a “transition plan,” developed with consultation from staff and unions, will provide support for former employees.
“Options for the affected workers will include transfers to other Eskom facilities, re-skilling, and upskilling for deployment to the renewable energy plants,” the World Bank said.
“A portion of project financing will be devoted to creating economic opportunities for local communities, which is expected to benefit approximately 15,000 people.”
