Eskom signs light bulb deal

SOUTH AFRICA - South Africa's power utility Eskom signed its first Emissions Credits Purchase Agreement ECPA with BNP Paribas under the utility's broader power-saving plans.

The agreement would enable Eskom to purchase power-saving bulbs that would be used in South Africa, the continent's largest economy, as the power utility struggles to meet rising power demand in the country.

South Africa's national grid nearly collapsed in early 2008, forcing mines and smelters to shut and costing the country billions of dollars.

Eskom has since launched an ambitious power expansion program but still needs to raise parts of the money required.

"As well as accessing carbon finance for Eskom, this project will have environmental and social benefits, reducing power demand in South Africa and reducing the energy bills of everyday consumers," the utility said in a statement.

Eskom said the carbon assets that would be created from the project would be Certified Emissions Reductions CER and Voluntary Emissions Reductions VER.

"The bank entered into a risk-taking contract with Eskom, to develop the Clean Development Mechanism CDM project at no cost to Eskom in exchange for an agreement to purchase carbon credits from Eskom," it added.