South Africa gets $500 million World Bank loan for major wind and solar project

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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 and batteries.

In a statement, the World Bank said the project would also create opportunities for the affected workers and communities.

The Bank said the decommissioning and repurposing of the Komati coal-fired plant was 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. “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.”

“This project is critical to our understanding of the sustainability of decommissioning, repurposing, and mitigating the socio-economic impacts for workers and communities before we scale up the move of the power sector into a low-carbon path,” said South Africa Minister of Public Enterprises, Pravin Gordhan.

Under the Komati project, the workers will be supported through a comprehensive transition plan, elaborated jointly with inputs from staff and unions.

 

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