The EIB supports a US$400 million investment scheme at COP27, which means more investment in South Africa's renewables sector.
The EIB (European Investment Bank) and the DBSA (Development Bank of South Africa) launched a €400 million (US$413 million) financing program to support renewable energy investment in South Africa.
The EIB has committed $413 million to a renewable investment scheme in South Africa
The program, unveiled at the UN COP27 conference in Egypt, will be supported by €200 million (US$206 million) in EIB funding and will increase the nation's energy framework's renewable capacity by 1.2GW.
It is a part of the Embedded Generation Investment Programme of the DBSA, which was introduced in 2017. It aims to finance and expand the deployment of solar PV and wind generation across South Africa, especially by independent power producers.
A financing program worth €400 million (US$413 million) has been launched by the DBSA (Development Bank of South Africa) and the EIB (European Investment Bank) to support the use of renewable energy in South Africa.
The program, unveiled at the UN COP27 conference in Egypt, will be supported by €200 million (US$206 million) in EIB funding and will increase the nation's energy framework's renewable capacity by 1.2GW.
It is a part of the Embedded Generation Investment Programme of the DBSA, which was introduced in 2017 and aimed to finance and expand the deployment of solar PV and wind generation across South Africa, especially by independent power producers.
According to DBSA CEO Patrick Dlamini, "South Africa, like many African countries, already feels the consequences of climate change." The Embedded Generation Investment Program's new EIB investment significantly supports South Africa's robust and sustainable growth.
The two banks first collaborated in 1995 and have worked on 11 projects together. This is the EIB's most significant investment in South Africa.
Ambroise Fayolle, vice president of the EIB, remarks that it is stepping up its efforts to support green energy projects worldwide.
It focuses on Africa and economies that rely on carbon-intensive activities and are vulnerable to the effects of climate change.
Recent investment projects in South Africa included one where the World Bank pledged $497 million to convert a coal plant into 150MW of solar PV. In addition, a 325MW PV manufacturing facility owned by Talesun, a Chinese company, debuted in the nation last week.
The EIB claims that its facility will support South Africa's Just Energy Transition Partnership, which emphasizes public sector development to guarantee that socioeconomic needs are satisfied in communities most susceptible to the energy transition's effects.
This news comes after the South African government announced in August that it would implement a slew of policy changes to accelerate renewable energy deployment across the country and stabilize its grid as soon as possible to mitigate the country's recent blackouts.
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