Over the past two decades, South Africa’s economy has grown at an annual rate of over 3%, and is today the largest in Africa. This growth has led to rising household energy demand, but South Africa’s energy sector has not kept pace. Coal-based power plants account for 75% of the country’s base-load electricity capacity, a significant factor underlying South Africa’s place as the world’s eighth largest per capita emitter of greenhouse gases (GHG). Accelerated urbanizaPoption has also outpaced urban public transport investments, leaving South Africa’s cities with insufficient and inefficient public transport options and also contributing to local pollution and rising GHG emissions.
...the percent of electricity produced from coal in 2009
To address its energy needs and reduce its GHG emissions, South Africa will tap US$500 million from the Clean Technology Fund (CTF) for investments in renewable energy and energy efficiency. South Africa’s CTF investment plan was drafted under the leadership of the government of South Africa in coordination with the African Development Bank (AfDB), members of the World Bank Group (IBRD, IFC), and key South African stakeholders. To leverage South Africa’s vast renewable wind and solar potential, CTF funds will finance a 100 MW concentrated solar power (CSP) plant, 200 MW public and private renewable wind capacity, and expanded bank lending for energy efficiency projects. CTF financing is expected to mobilize around US$3.42 billion in additional public and private financing for projects to support South Africa’s progress toward equitable and sustainable economic growth.