The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) have further boosted their support for local renewable energy projects in the private sector – aiming to increase clean energy generation while supporting new jobs.
A €100-million (R1,9-billion) loan from the EIB, matched by the DBSA, comes in addition to the €400-million (R7,9-billion) financing announced at COP27 in 2022.
The financing supports the DBSA’s Embedded Generation Investment Programme for the development and upscaling of small and medium-sized renewable energy projects – in particular, solar photovoltaic and onshore wind – by independent power producers in South Africa.
The financing initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure. It is aligned with the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation efforts – with a focus on the electricity system – and comes on top of the EIB’s €1-billion (R19,79-billion) commitment under JETP.
“Our enduring and strong partnership with the EIB has taken an exciting step forward as we increase our financial support for renewable energy,” says DBSA CEO Boitumelo Mosako. “This collaboration reflects our shared commitment to a greener future. We continue to work closely with our stakeholders supporting South Africa’s Just Energy Transition (JET) journey. With funded projects now coming online and contributing to the energy grid, we are proud to play a role in driving sustainable growth and energy resilience for South Africa.”
EIB vice-president, Ambroise Fayolle, adds: “We are proud of the progress of this initiative and our partnership with DBSA. Investing in renewable energy is not only imperative to combat climate change, but it will also lead to more reliable energy supply which businesses need in order to grow.”