Strengthening the high-voltage electricity network

ESKOM is South Africa’s electricity public utility The company is divided into Generation, Transmission and Distribution divisions and together Eskom generates approximately 95% of electricity used in South Africa.

ESKOMs high-voltage network is not adapted to the rapid development of renewable energies, either geographically (the new production capacities are located in low-consumption areas where the network is very underdeveloped) and in terms of intermittency management (historical coal-based production is very stable over time).

As a result, it is necessary to upgrade the South African energy grid to adapt it to recent and future developments in the national energy system.

AFD supports ESKOM's investments in strengthening its high-voltage electricity network through a multi-tranche facility to finance several operator projects included in the ESKOM development plan, during the period 2017-2019.

The first tranche of the facility will partially finance the "Namaqualand Phase 2" project, allowing the extension and strengthening of the network in the Northern Cape, in order to produce a maximum of 700 MW, and thus allowing the integration of renewable energy plants under construction in the Upington area.

The following tranches of the facility will finance projects meeting eligibility criteria validated with Eskom to ensure that these meet the environmental protection objectives of the facility.

The project will :

• Help support Eskom in building a modern and reliable electricity grid;
• Allow the strengthening of the electricity networks, essential for the extraction and the transport of the renewable energy produced by the plants under construction in South Africa.