The loan will go towards financing the 100 megawatt wind project planned for the Western Cape and a 100 megawatt solar power project in the Northern Cape, chief executive Brian Dames said.

“Eskom is committed to reducing its carbon footprint. This is an exciting time in the company’s history with its first large scale introduction of two critically important renewable energy projects (wind and concentrated solar power) in its fleet,” Dames said in a statement.

“It further demonstrates South Africa’s commitment to transition to a cleaner energy mix,” he said.

The firm derives most of its electricity from coal-fired power stations, with one nuclear plant outside Cape Town.

Rolling power cuts in 2008 forced the state-owned entity to rethink its power generation strategies, as supply remains under pressure due to growing demand.

In November 2010, Eskom received a loan of 15 billion rand ($2.2 billion) from the Development Bank of Southern Africa to fund new power projects.

The company has received several other loans from various international institutions to support its expansion plans.