several global financial institutions, as the organisation, which currently emits about 213 million tonnes of carbon dioxide equivalent each year, seeks about $7 to $8 for every tonne it cuts. According to Reuters, the power utility has already begun discussion with some of the top financial institutions such as the World Bank and the African Development Bank.
“It’s a lot of money, so what we are putting on the table is to say to funders: South Africa can offer you the biggest point source of carbon emissions reduction in the world,” the general manager at Eskom’s Just Energy Transition office, Mandy Rambharos, told the news agency.
With many governments and organisations accelerating their climate efforts ahead of the UN climate talks (COP26) scheduled to be held in Glasgow in November, this funding will be vital for Eskom’s plans to “repower” its Komati coal plant through solar and batter storage, a project which is expected to be presented at the summit.
While there have been several recommendations made for Eskom to reach carbon neutrality by mid-century, the most practical and least aggressive path is considered to be the one set out by the South African government back in 2019, which called on the organisation to shut down about 35,000 megawatts (MW) of coal by 2050. Some experts have even recommended the closing down of the Medupi and Kusile plants by 2040, at least 20 years ahead of schedule. These two coal plants are expected to be among the largest in the world when fully operational.
According to Rambharos although natural gas could be used in Eskom’s energy transition, the ultimate goal is to replace coal entirely with renewables. “That is the future. I don’t think we can look at 2050 and still see fossil fuels in there to be honest,” she said.
