- The European Investment Bank (EIB) and the Development Bank of South Africa (DBSA) have announced an additional commitment of €100 million (ZAR 1.98 billion/$110,899 million) each to the €400 million ($443,596 million) initiative launched in 2022 to support private sector solar and wind energy projects in South Africa.
- The initiative aims to contribute to reliable clean energy and job creation, with supported projects expected to generate 384 MW of new renewable energy capacity. With the additional funding, the total commitment now stands at €600 million ($665,394 million)
Renewable energy, derived from sources such as solar and wind, is expected to reduce carbon emissions associated with fossil fuels and help mitigate climate change.
Commenting on the new financing, DBSA Chief Executive Officer Boitumelo Mosako said: “We continue to work closely with our stakeholders, supporting South Africa’s energy transition. 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 stated, “Investing in renewable energy is not only imperative to combat climate change, but it will also lead to a more reliable energy supply, which businesses need in order to grow.”
The financing supports the DBSA’s programme for the development and upscaling of small and medium-sized renewable energy projects by independent power producers in South Africa.
Additionally, the initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure and aligns with the Just Energy Transition Partnership (JETP) to support South Africa's decarbonisation efforts, focusing on the electricity system and comes on top of the EIB’s € 1 billion ($1,108,755,000) commitment under JETP.
In July 2024, South African President Cyril Ramaphosa mentioned that the country has a pipeline of renewable energy projects, representing over 22,500 MW of new generating capacity, valued at around R400 billion in private investment and expected to create many jobs.
Meanwhile, as EIB and DBSA advance their support for private sector solar and wind energy projects in South Africa, a South African startup, Open Access Energy (OAE), aims to improve the distribution and management of renewable energy. OAE secured a $750,000 investment from Factor E Ventures, as part of the first phase of its $1.5 million seed round.
