The US Export-Import Bank has announced that it will invest $2 billion into South African green energy funds. The country has plans to increase its power supply by more than 50,000 MW as it carries out its $127 billion plans to overhaul the national electricity grid.
Fred Hochberg, the bank's president, told reporters that they will sign the agreement "for $2 billion for renewable energy exports from the US to South Africa." He confirmed that as soon as the deal was fully signed it will go "into effect immediately."
The plans include the installation of 3,275 MW of renewable energy sources, comprising 42 percent South Africa's energy generation; with a further 23 percent coming from nuclear power plants.
Hochberg said that the bank has "been an active financier of solar and wind energy all over the world. In fact last year we were the largest single financier of solar power in India, we would like to do the same thing here."
US Secretary of State Hilary Clinton, on tour of the nation in order to promote trade and business ties between the US and South Africa, is expected to approve and sign the deal today.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com More