- Eskom generates approximately 80% of the country’s electricity through its coal stations but has not been able to end blackouts.
- Over the next five years, South Africa needs nearly $80 billion to fund its transition to greener energy sources.
The World Bank has approved a $1 billion loan for South Africa to help address its energy crisis and end blackouts. The country’s energy crisis peaked this year with the worst electricity blackouts. The energy problem has forced the country to lean on its highly polluting coal-fired power stations. South Africa has experienced scheduled, rolling blackouts for months because of problems generating enough electricity for its 62 million people.
Eskom, South Africa’s power utility, generates approximately 80 per cent of the country’s electricity through its coal stations. However, they have failed to meet demand due to mismanagement, corruption and regular breakdowns. In the short term, South Africa’s risk of compromising its commitment to its climate change targets is evident. This is as President Cyril Ramaphosa announced in April that it may delay shutting down some of its coal stations because of the electricity supply problems.
While Africa contributes the least to climate change with the most impact, South Africa ranks 16th in global greenhouse gas emissions. According to Climate Watch, it is 45th per capita based on 2019 data. South Africa needs nearly $80 billion over the next five years to fund its transition to greener energy sources. It has already received a $439.5 million loan from the World Bank to help convert a former power station into a renewable energy provider.
Last year, South Africa decommissioned the Komati power station. Still, its story exemplifies how developing countries desperately need money to finance the transition to greener energy sources to help meet climate change goals. The World Bank said, “The loan endorses a significant and strategic response to South Africa’s ongoing energy crisis and the country’s goal of transitioning to a just and low carbon economy.” Stakeholders are urging the World Bank to provide more funding for African countries confronting climate change and other issues.