South Africa gets €400m Renewable Energy Boost as EIB, DBSA Pen New Deal
The European Investment Bank (EIB) and the Development Bank of South Africa have formally agreed to a €400m facility to be supplied by the EIB for private sector renewable energy investment across South Africa.
Africa’s most industrious economy is currently experiencing its greatest electrical supply crisis, with state-owned electricity firm, Eskom is reportedly enforcing power cuts and rolling blackouts due to its months-long struggle to produce steady electricity. Eskom’s aged fleet of coal-fired power plants frequently experiences outages that interrupt South Africa’s electricity supply.
At the moment, coal accounts for almost 80% of the energy mix in South Africa, making it by far the most important energy source. The nation exports coal at the fifth-largest rate in the world. According to a statement obtained by Majorwaves, private sector renewable energy providers would be able to access the initiative backed by €200m from the EIB to execute renewable energy projects in the country.
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The scheme would help to increase clean energy power generation and contribute to DBSA’s Embedded Generation Investment Programme (EGIP). The new initiative is expected to generate an additional 1200 megawatts of generating capacity and avoid 3.6 million tonnes of CO2 emissions once all the supported projects are operational.
The Chief Executive Officer, DBSA, Patrick Dlamini emphasised the bank’s aim of doubling down on renewable energy investment and improving energy security across Africa.
“South Africa, like many African countries, is already suffering the effects of climate change. This new investment from the EIB in our Embedded Generation Investment Programme is an important contribution to South Africa’s resilient and sustainable growth,” he added.
EIB Vice-President Ambrosie Fayolle noted, “As the EU Climate Bank, the EIB is committed to supporting South Africa’s efforts to decarbonise and today’s agreement of the largest ever EIB investment in South Africa follows past support for renewable energy and climate adaptation projects across the country.
“EIB Global is pleased to build on three decades of partnership with DBSA to boost renewable energy generation which will contribute to energy security and a just transition in South Africa. The EIB is stepping up our efforts to support green energy projects globally, with a special focus on Africa and economies dependent on carbon intensive activities that are vulnerable to the impacts of climate change.”
