German development bank KfW has given Eskom a R4-billion loan which will be used to modernise its power grid, enabling the utility to connect solar and wind power plants to the system.
However, coping with new energy production will require an estimated $15 billion by 2022 to be invested in Eskom’s aging transmission system, reports news agency Reuters.
"South Africa lacks transmission infrastructure which is needed to enable the country to meet its target," said KfW, senior energy and climate project manager, Ihno Baumfalk, speaking at the South African International Renewable Energy Conference (SAIREC) in Cape Town.
"We need to have more investment and planning in the grid, and coherent collaboration," head of the energy department's Independent Power Producers unit Karen Breytenbach reportedly told Reuters.
