HomeAfrica-NewsDBSA and EIB finance renewable energy projects in SA

DBSA and EIB finance renewable energy projects in SA

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It is the largest investment ever made by the EIB for green energy programs of the local private sector.

Vice President Ambroise Fayolle of the European Investment Bank (EIB) and Executive Director Patrick Dlamini of the Development Bank of Southern Africa (DBSA) formally agreed on 11 November at COP27, Sharm El-Sheikh, Egypt, on EIB financing in South Africa to back a new targeted funding program to unlock €400 million for private sector renewable energy investment across South Africa.

The €400 million initiative (equivalent to ZAR 7.2 billion) will be backed by €200 million from the EIB and will provide financing for a number of new renewable energy projects across South Africa.

The scheme will help increase clean power generation and contribute to DBSA’s Integrated Generation Investment Program (EGIP), which is co-financed by the Green Climate Fund. The new initiative is expected to generate an additional 1,200 MW of generation capacity and avoid 3.6 million tons of CO2 emissions once all supported projects are operational.

The projects it will finance are expected to create hundreds of new jobs during construction and operation, and support local businesses.

Dlamini commented: “DBSA has a clear objective of increasing investment in renewable energy and improving energy security, not only in South Africa but across the entire African continent. South Africa, like many African countries, is already suffering [from] the effects of climate change. This new EIB investment in our Integrated Generation Investment Program is an important contribution to resilient and sustainable growth in South Africa.”

Fayolle added: “As the EU Climate Bank, the EIB is committed to supporting South Africa’s efforts to decarbonise and today’s deal for the largest ever EIB investment in South Africa follows previous support for renewable energy and adaptation projects. weather across the country. EIB Global is pleased to build on three decades of partnership with DBSA to drive renewable energy generation that will contribute to energy security and a just transition in South Africa.

“The EIB is intensifying its 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.”

EGYPT

DBSA’s Generation Incorporated Investment Program (EGIP) supports the development and expansion of renewable wind and solar PV integrated generation projects, developed by independent power producers operating in South Africa. Integrated generation is the production of electricity from smaller-scale power plants and is generally defined as projects that are planned for your own use. EGIP offers a credit support mechanism through the provision of risk capital.

Watch the DBSA and EIB signing ceremony in the EIB-Benelux Pavilion at COP27 here:

Cheaper solar, onshore wind and energy efficiency

Funding will be available for renewable energy projects (solar photovoltaic and onshore wind power generation) and potentially for energy efficiency projects promoted by the private sector in South Africa. These projects are expected to provide a reliable source of energy for South Africans at a lower cost than fossil fuel alternatives. The EIB facility complements the Just Energy Transition Partnership with South Africa, which focuses on supporting the public sector.

EIB-DBSA Association

This new operation builds on a long-standing and successful partnership between the EIB and DBSA, dating back to 1995, when the EIB first started working in South Africa. Since then, the EIB and DBSA have worked together on 11 projects, including a climate action mechanism that is currently being implemented and support for municipal infrastructure in areas such as water, sanitation and education.

About DBSA

The Southern African Development Bank is a leading Development Finance Institution (DFI), wholly owned by the South African government. Established in 1983, the DBSA has a mandate to promote economic growth and regional integration by mobilizing financial and other resources from the national and international public and private sectors for sustainable development projects and programs in South Africa, SADC and the rest of the African continent.

For more information visit www.dbsa.org

Email: [email protected]

Instagram: https://instagram.com/dbsabank?igshid=YmMyMTA2M2Y=

Facebook: https://web.facebook.com/DBSABank

LinkedIn: https://www.linkedin.com/company/dbsa/

Twitter: visit DBSA_Bank

About the EIB

The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. The EIB Group has adopted a Climate Bank roadmap to deliver on its ambitious agenda to support €1 trillion in investment in climate action and environmental sustainability in the decade to 2030, and deliver more than 50% of EIB financing for climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the beginning of 2021.

EIB Global is the new specialist arm of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong and focused partnerships within Team Europe, together with other development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through its offices around the world.

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