South Africa will receive financial aid from richer countries to phase out coal for its power generation sector, the German development ministry announced today at the UN Cop 26 climate conference.

A partnership between Germany, the UK, the US, France and the EU will support South Africa in its energy transition with "a particular focus on phasing out coal", the German ministry said.

Germany will contribute €700mn, with the total package - including grants, loans from multilateral banks, guarantee schemes and direct private investment - valued at around $8.5bn over the next five years.

Coal accounts for around 90pc of South African generation but its plants are old and unreliable, leading to regular blackouts and power shortages.

No timeline was given for when plants will begin to close. The German ministry said it would provide expertise to South Africa, including around improving the framework for private investment in renewable energy and to mitigate the social impact of a coal phase out with particular focus on retraining the 90,000 coal miners in South Africa.

It will also support investment in green hydrogen production and the decommissioning and environmental rehabilitation of mining sites.

By Eleanor Green

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Argus Media Limited published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 14:29:02 UTC.