The World Bank has approved South Africa’s loan for a $497 million (around R9 billion) project to decommission and repurpose the Komati coal-fired power plant in Mpumalanga using renewables and batteries.
The funding is aimed at supporting government’s efforts to transition the country toward a low-carbon development path.
In a statement, the World Bank says the project will create opportunities for affected workers and communities.
The bank added that the Komati Project aims to help mitigate climate change, enhance energy security, and support economic opportunities for 15 000 people in the Komati area.
The Komati Just Energy Transition Project is financed jointly through a $439 million World Bank loan, a $47 million concessional loan from the Canadian Clean Energy and Forest Climate Facility, as well as a $10 million grant from the Energy Sector Management Assistance Program.
The World Bank says the repurposing of the plant will enhance energy security in South Africa with the installation of a combination of wind, solar, and batteries energy solutions.
