Eskom mulls taking on Cop26 funds as equity injection

to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.

The arrangement would enable Eskom to access the US$8.5-billion pledged by the US, UK, Germany, France and the European Union without adding to its debt burden, a person familiar with the proposal said. The company wants to use the money to fund the closing of some coal-fired power plants and the construction of renewable energy facilities to replace them.

Eskom has a proposed pipeline of almost R200-billion of renewable energy, gas and battery storage projects and needs to spend at least R120-billion rand on transmission lines. But with its debt forecast to reach R416-billion rand by the end of this month, it will struggle to take on more borrowing without breaching its bond and loan covenants.

Still, national treasury will need to assess what the best arrangement is for all parties, including the government and taxpayers, rather than just meeting Eskom’s needs, said the person, who asked not to be identified because they’re not authorised to comment on the matter.The $8.5-billion was pledged at the Cop26 climate summit in Glasgow in November.

The deal was hailed as one of the standout achievements at Cop26 and is seen as a prototype of a funding model that could be used to decarbonise other coal-dependent nations. Eskom accounts for about 40% of South Africa’s emissions, with almost all of those coming from its 17 coal-fired plants. —

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Eskom considering taking climate funds as equity injectionSouth Africa’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: BusinessTechSA - 🏆 24. / 61 Read more »

Eskom considering taking on climate funds as equity injectionSA’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: TimesLIVE - 🏆 28. / 59 Read more »

Eskom considers taking R127 billion green energy funding as equity injectionSouth Africa’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: mybroadband - 🏆 11. / 67 Read more »

Eskom considers taking R127 billion green energy funding as equity injectionSouth Africa’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: mybroadband - 🏆 11. / 67 Read more »

Eskom considering taking climate funds as equity injectionSouth Africa’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: BusinessTechSA - 🏆 24. / 61 Read more »

Eskom considering taking on climate funds as equity injectionSA’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed.
Source: TimesLIVE - 🏆 28. / 59 Read more »