AFD and Eskom commit to a competitive electricity sector

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The French Development Agency (AFD) and Eskom today [Monday, 3 May] signed a memorandum of understanding to further affirm their commitment to the promotion and development of a competitive electricity sector.

Over the past 14 years, AFD has committed 5.9 billion rand (340 million euros) in loans to support Eskom’s projects.

The MOU aims to establish a framework to strengthen the current cooperation and collaboration between the two parties. The agreement also aims to promote the development of a competitive electricity sector, supported by modern, low-carbon technology.

Eskom, South Africa‘s public electricity company, produces around 95% of the country’s electricity and is responsible for distribution to large customers, in both rural and urban areas.

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AFD and Eskom have the JET strategy in mind

In response to global shifts towards liberalized electricity markets and more carbon-efficient energy sources, Eskom has embarked on a restructuring program to ensure its sustainability and resilience while pursuing a trajectory towards a sustainable and low-carbon future. carbon thanks to the just energy transition (JET). strategy.

The AFD and Eskom MOU pursues the following objectives:

  1. Support for the implementation of the Namaqualand Strengthening Phase 2 project
  2. Support for the implementation of interventions to restructure Eskom’s business model, via a technical cooperation grant
  3. Identify potential collaborations for the energy transition to renewable energies, to mitigate social and environmental impacts, through innovative proposals such as the Just Energy Transition strategy
  4. Support the development of a just energy transition strategy to advance Eskom’s aspiration for a socially inclusive and low-carbon future
  5. Facilitate dialogue between Eskom and strategic stakeholders around the Komati power plant to consolidate visions of a just energy transition.

Aurélien Lechevallier, French Ambassador to South Africa, commented: “We have long-standing ties with our partner Eskom. We are convinced that our close collaboration with Eskom will strengthen Eskom’s ability to find lasting solutions to the challenges it faces. “

André de Ruyter, Managing Director of Eskom Group, said: “The Komati Power Plant is part of Eskom’s Old Power Plant Park that we hope to use to light a much brighter and more sustainable future as part of the strategy. of just energy transition. In this brighter and more sustainable future of electricity production, Eskom is encouraged by the continued support and partnership of the French people represented by His Excellency Ambassador Aurélien Lechevallier and AFD. French institutions have always been alongside Eskom at key events in the development of the electricity industry in South Africa.

Bruno Deprince, AFD regional director, also commented: “Eskom is a very important long-term partner of AFD, which is why we are affirming our commitment to support efforts to transform the public service.”

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