World Bank approves $497 million financing to lower South Africa’s greenhouse gas emissions

The World Bank has approved South Africa’s request for a $497 million project to decommission and repurpose the Komati coal-fired power plant using renewables, supported by batteries for storage.

The Komati Just Energy Transition Project is financed jointly through a $439.5 million World Bank loan, a $47.5 million concessional loan from the Canadian Clean Energy and Forest Climate Facility (CCEFCF), and a $10 million grant from the Energy Sector Management Assistance Program (ESMAP). The decommissioning and repurposing of the Komati coal-fired plant is a demonstration project that can serve as a reference on how to transition fossil-fuel assets for future projects in South Africa and around the world. The project will provide learning experiences through a cycle of piloting, monitoring, assessing, documenting, and information sharing. The repurposing of the plant will enhance energy security in South Africa with the installation of a combination of 220 MW renewable energy solutions (including 150 MW solar photovoltic solar and 70 MW wind) and 150 MW batteries, which together will help to improve the quality of electricity supply and grid stability.

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