EIB and Southern African Development Bank increase support for private sector renewable energy to EUR 600 million/ZAR 11.9 billion

EIB AND Southern African Development Bank Increase private sector support for renewable energy to 600 million/ ZAR11.9 billion

The EIB and DBSA have committed to provide an additional EUR 100 million (ZAR1.98 billion) each of the initiatives launched in 2022.

The initiative supports private sector solar and wind energy projects. South Africacontributing to reliable, clean energy and job creation.

The supported projects are expected to produce 384 MW of new generating capacity from renewable sources.

This European Investment Bank (EIB) and Southern African Development Bank (DBSA) has further increased support for private sector renewable energy projects with the goal of increasing clean energy production while supporting job creation.

100 million (ZAR1.98 billion) the EIB loan, supplemented by the DBSA, is an addition to the 400 million (ZAR7.9 billion) financing announced in COP27 in 2022. The funding supports the DBSA Embedded Generation Investment Programme to develop and scale up small and medium-sized renewable energy projects, in particular solar PV and onshore wind, implemented by independent power producers in South Africa.

The funding initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure. It is in line with Partnership for a Just Energy Transition (JETP) aims to support South Africa’s decarbonisation efforts, with a focus on the electricity system, and complements the EIB’s €1 billion (ZAR19.79 billion) commitment under JETP.

Our strong and enduring partnership with the EIB has taken an exciting step forward by increasing our financial support for renewable energy. This collaboration reflects our shared commitment to a greener future. We continue to work closely with our stakeholders to support South Africa’s Just Energy Transition (JET) journey. With funded projects now online and contributing to the energy grid, we are proud to play a role in driving sustainable growth and energy resilience for South Africasaid the general director of DBSA Boitumelo Mosako.

We are proud of the progress of this initiative and our partnership with DBSA – commented the Vice-President of the EIB Ambroise FayolleInvesting in renewable energy is not only essential to combating climate change, but will also provide a more reliable energy supply that businesses need to thrive.

This initiative is a concrete example of close cooperation between European Union AND South Africa to promote a just energy transition in a way that is sustainable and delivers value to the South African economy, he said Sandra KramerAmbassador European Union Down South Africa.

The EIB and DBSA have been working together to scale up financing for shared priorities since 1995, when the EIB first started working together. South AfricaThey have collaborated on projects supporting climate action, water, sanitation and education. This week, the EIB announced the launch of its Regional Centre for South Africa and Indian Oceanwith headquarters in Pretoriawith a reinforced team in place.