DBSA and EIB launch €400 million renewable energy initiative
Vice-President Ambroise Fayolle of the European Investment Bank (EIB) and CEO Patrick Dlamini of the Development Bank of Southern Africa (DBSA) have formally agreed EIB financing in South Africa that will back a new targeted financing programme to unlock EUR 400 million for private sector renewable energy investment across South Africa.
The EUR 400 million initiative (7.2 billion ZAR equivalent) will be backed by EUR 200 million from the EIB and provide financing for a range of new renewable energy projects across South Africa.
The scheme will help to increase clean energy power generation and contribute to DBSA’s Embedded Generation Investment Programme (EGIP), that is co-financed by the Green Climate Fund. The new initiative is expected to generate an additional 1200 MW of generating capacity and avoid 3.6 million tonnes of CO2 emissions once all the supported projects are operational.
The projects it will finance are expected to create hundreds of new jobs during construction and operation and support local companies.
DBSA CEO Patrick Dlamini commented: “ The Development Bank of Southern Africa has a clear goal to increase investment in renewable energy and improve energy security, not only in South Africa but across the African continent. 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.”
EIB Vice-President Ambroise Fayolle added: “ 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 .”
