South Africa\u2019s President Cyril Ramaphosa is considering whether to back a proposal to improve troubled Eskom\u2019s debt terms by closing polluting coal plants early to make way for renewable energy.<\/p>\n
A special purpose vehicle would lower interest rates paid by the state-owned utility by accelerating the closure of coal-fired stations, according to a person familiar with the matter who asked not to be named because the information isn\u2019t public.<\/p>\n
The plan was submitted to Ramaphosa by a task team, which has suggested a range of options for rescuing Eskom, the person said.<\/p>\n
The power company is struggling under R440 billion ($31 billion) of debt and expected to report another loss for the financial year.<\/p>\n
Ramaphosa said last week that his government would soon give Eskom \u201ca significant portion\u201d of the R230 billion it needs over the next decade to remain solvent.<\/p>\n
Development finance institutions are interested in the Eskom debt plan, which would unlock as much as R200 billion of climate change mitigation funding at discounted interest rates, Johannesburg-based City Press reported last month, citing Grove Steyn, a member of the task team. South Africa currently generates about 90% of its electricity from coal.<\/p>\n