South Africa, one of the world’s
largest greenhouse-gas emitters, has been granted financing of $497 million
to decommission one of its largest coal-fired power plants and convert it to
renewable energy, the World Bank said.

In a statement overnight Thursday, the bank said the newly-closed Komati
power station about 170 kilometers (105 miles) northeast of Johannesburg will
be repurposed using solar and wind sources, supported by batteries for
storage.

The project aims at easing carbon emissions and creating economic
opportunities in the area, which has been home to one of Africa’s largest
coal plants for over 60 years.

“Closing the Komati plant this week is a good first step toward low carbon
development,” said World Bank Group President David Malpass.

South Africa secured $8.5 billion in loans and grants at the UN climate talks
last year from a group of rich nations to finance its switch to greener
energy.

But it remains heavily dependent on coal, which generates 80 percent of its
electricity. The power sector accounts for 41 percent of national CO2
emissions.

Africa’s most industrialised economy has been suffering sweeping power
outages caused by failures at state-owned energy firm Eskom’s ageing and
poorly maintained infrastructure.

Workers laid off by the plant’s closure will be supported through a
transition plan, while a portion of the financing will be spent on creating
economic opportunities within local communities.

The funding comprises a $439.5 million World Bank loan, a $47.5 million
concessional loan from the Canadian Clean Energy and Forest Climate Facility
and a $10 million grant from the Energy Sector Management Assistance Program
(ESMAP), an initiative to help low- and middle-income countries.

Earlier this week the World Bank said South Africa would require at last $500
billion to achieve carbon neutrality by 2050.