South Africa, a major emitter of glasshouse emissions and a nation having difficulty transitioning to a more energy-efficient system, was given $497 million by the World Bank, according to a statement released on Friday.
Leading industrial nation on the continent, whose team will travel to COP27, which kicks off on Sunday in Egypt, with President Cyril Ramaphosa, still relies on coal for 80% of its electricity. Coal is a major part of the South African economy, which employs close to 100,000 people.
However, the nation is plagued by frequent power outages as a result of the debt-ridden state-owned Eskom’s inability to generate enough electricity from facilities that are, on average, 41 years old and in bad condition.
The World Bank “approves $497 million in financing to reduce greenhouse gas emissions in South Africa and support a just transition,” the institution said.
The Komati power plant in the northern province of Mpumalanga will be converted using the money, which will come in the form of grants and loans.
Having been in operation for more than 60 years, the factory was shut down on Monday. When it was finished, the plant, which had nine generating units, could use up to 12,000 tonnes of coal a day and generate twice as much energy as all the other plants in the nation.
According to the World Bank, it will be transformed into a renewable energy production site powered by 150MW of solar, 70MW of wind, and 150MW of battery storage in order to “act as an example” for the energy transformation of the powerful South Africa.
“Reducing greenhouse gas emissions is a difficult challenge worldwide, particularly in South Africa given the high carbon intensity of the energy sector,” said the organisation’s president, David Malpass, quoted in the statement.
In order to finance the switch to greener options, South Africa this year received $8.5 billion in loans and grants from a collection of wealthy nations.
Before COP27, tense debates regarding how the funds should be used were scheduled to begin.
The World Bank estimates that the nation will require at least $500 billion to become carbon neutral by 2050.
