Just two months after the United States accused South Africa of supplying Russia with arms to aid its war in Ukraine, the country has given Eskom R24 million.
The grant was awarded to the state entity to fund necessary expertise and technical assistance to expand and strengthen the country’s power grid.
The US Trade and Development Agency today signed an agreement with Eskom that will see the power utility being awarded US$1.3 million for exploring new technologies, including green power.
This deal comes on the same day that Eskom announced load shedding will be ramped up to Stage 4 – and at a time when the country is gripped by a cold front.
In August, the USTDA announced its support of the Just Energy Transition Partnership (JETP) that was established between South Africa and several developed countries, including the United States, in 2020. The JETP included an initial offer of R159 billion to help fund the country’s transition from coal to renewable energy. This funding was provided by France, Germany, the US, the UK, and the European Union.
At the time, USTDA director Enoh Ebon said the agency’s activities in South Africa were already aligned with the JETP, and that feasibility studies were being pursued and technical support provided for renewable energy, smart-grid, and battery storage projects in several countries. She added that the agency was well situated to feed projects into the initiative.
Currently, South Africa’s power grid is so severely constrained that the country is not able to develop any renewable energy projects. This funding has therefore been welcomed by Eskom.
Meanwhile, South Africa’s power utility has ramped up the use of its emergency generation facilities since the weekend as it tries to balance reduced capacity from its coal-fired plants. There is currently increased demand for power amid the old front. Load shedding will switch between Stage 3 and Stage 4 while Eskom tries to preserve its emergency reserves.