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The Development Bank of Southern Africa (DBSA) has financed 21 renewable energy projects since the launch of the Renewable Energy Independent Power Producer Procurement Programme (REIPP).
This follows the announcement of South Africa’s Gas to Power Project Information Memorandum (PIM).
Lucy Chege, GM for energy financing at the DBSA, comments: “The DBSA’s achievements in the renewable energy space confirms our role as an instrumental partner in developing integrated solutions for and on behalf of the Department of Energy’s IPP office and National Treasury.”
The announcement comes two weeks after the release of the DBSA’s financial results which revealed that the bank had delivered a net profit of R2,6-billion and sustainable earnings of R1,4-billion in the 2015/2016 financial year. In this 12 month period ending March 2016, the DBSA delivered R28-billion across the total infrastructure value chain, with development assets now standing at R77-billion and total assets at R82-billion.
To date, the DBSA has contributed to 2512 megawatts of power being installed on the national grid through the funding of 21 projects across South Africa. This has significantly addressed the energy crisis challenges across South Africa and the region. Approximately R14,9-billion of commitments have been made by the DBSA to support government programmes in the energy space. Some of the successes include the construction of two IPP Peaking power plants in South Africa – Avon 670MW and Dedisa 335 MW.
The 21 projects funded by the DBSA with a total capacity of 2512MW are part of South Africa’s REIPP Programme and the Department of Energy’s s Peakers IPP Programme. All projects are currently operational and delivery power to the national grid. These projects include five commercial solar panels, nine solar PVs and five wind projects.
Approximately R2,167-billion has been provided to enable the participation by BBBEEE players and local community trusts in various energy projects. Funding has been provided in the form of senior debt, mezzanine debt and BEE funding.
The bank has also financed numerous gas fired plants and infrastructure throughout the continent as part of regional integration efforts to address the power crisis. Regional projects include Cenpower, Ghana powership and funded the Bulk Oil Storage Terminal of Ghana.
“The energy portfolio accounts for the banks largest exposure and this signals our commitment to working with all partners and promoting the DBSA’s regional integration and infrastructure programme, says Chege.