South African state electricity company Eskom has secured a €100-million (R980.8-million) credit facility from French development finance group Agence Française de Développement (AFD) to finance the Sere Wind Project in the Western Cape.
The loan forms part of a seven-year, R300-billion funding plan announced previously by Eskom.
The facility, which is for 20 years, will go toward financing Eskom’s 100 MW Sere Wind Project in Vredendal in the Western Cape.
“This is an exciting time in Eskom’s history with the first large-scale introduction of two critically important renewable energy projects, including wind and concentrated solar power, in its fleet,” Eskom CEO Brian Dames said in a statement this week.
“This demonstrates our commitment to reducing our carbon footprint and making the transition to a cleaner energy mix.”
The credit facility from the AFD is aligned to similar funding which Eskom has obtained from the African Development Bank, the World Bank and the Clean Technology Fund for renewable energy projects in wind and concentrated solar power.
“Eskom values the relationship we have built with the AFD and we hope in the near term to conclude another facility with the bank for Eskom’s planned 100MW Concentrated Solar Power Plant in the Northern Cape,” said Eskom Finance Director Paul O’Flaherty said.
The AFD is a bi-lateral development finance institution that works on behalf of the French government and its mission is to finance development according to France’s Overseas Development Assistance policies.
It operates in around 60 countries and has been operating in South Africa since 1994 through its Johannesburg regional office.