- World Bank approves South Africa’s request for $497 million project.
- The power sector accounts for 41 per cent of its CO2 emissions.
The World Bank Group Board of Executive Directors approved South Africa’s request for a $497 million project to decommission and repurpose the Komati coal-fired power plant using renewables and batteries. The project will also create opportunities for the affected workers and communities. This aligns with the government’s efforts to transition the country toward a low-carbon development path with reliable, affordable, and sustainable energy for all.
Addressing energy poverty and transitioning toward lower carbon development requires a reliable power sector to underpin inclusive economic growth. The Komati Project aims to help mitigate climate change, enhance energy security, and support economic opportunities in the Komati area. The project is aligned with the country’s Just Transition Framework, which aims to minimize the socio-economic impacts of the climate transition, improve the livelihoods of those most vulnerable, and embrace the opportunities stemming from the transition.
The decommissioning of the Komati coal-fired plant will result in reduced carbon emissions and improved ambient air quality in the vicinity of the plant. The power sector is a significant contributor to greenhouse gas emissions in South Africa, accounting for 41 per cent of its CO2 emissions. This is due mainly to Eskom’s fleet composition. Its 15 coal-fired power plants, with an average age of 41 years, provide 38.7 GW of the country’s 52.5 GW installed capacity.