New ‘climate bonds’ could help SA meet clean energy targets

Posted by Laura Grant on May 29, 2008
Posted in Renewable energy

The United Nations is considering a new type of bond to help developing countries finance renewable energy projects, Bloomberg reports.

Yvo de Boer, the UN’s top climate change official, said yesterday that the idea was that “climate bonds” would be sold to investors by developing countries in Africa, Asia and Latin America. They would simplify the funding of wind farm and solar projects and encourage investment in nations struggling to meet their renewable-energy targets, de Boer said.

The plan had not yet been presented to countries or investors, de Boer said.

Simplifying the funding of renewable energy projects would be good news for South Africa which has got off to a slow start in meeting its renewable energy target of 10 000 GWh/year renewable energy consumption by 2013.

For example, Business Report recently reported that Eskom was struggling to find investors for its 100MW concentrating solar power demonstration plant in Upington.

The CSP plant will cost R5-billion, of which Eskom can put up R3-billion. It is looking for partners to fund the remaining R2-billion, the report said.

Eskom’s other renewable energy project, a 100MW wind farm in the Western Cape, received a R1.4-billion loan from the French Development Agency which will reportedly cover most of the costs. According to BR, it is expected to be operational in 2010.

The country’s first commercial wind farm, with a 5.2MW capacity, was officially switched on on Friday.

Read the full report on Bloomberg

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