DBSA funds R9.6 billion for renewable energy projects

The Development Bank of Southern Africa (DBSA) has approved loan facilities of R9.6 billion for renewable energy projects, the development finance institution reported on Monday.

These projects, which form part of the 28 successful preferred bidders of the first bid window for the Renewable Energy Independent Power Producers Programme (REIPPP), were solar focused, with the exception of one wind energy project.

The loan will support the establishment of the renewable energy sector, representing 896.5 megawatts of the 3 725 national target announced by the Department of Energy.

"The energy sector is faced with a number of challenges. We believe this investment in the local power generation and transmission infrastructure will stimulate the development of the green economy which is a key priority in creating jobs and growing the South African economy,” group executive for investment at DBSA, TP Nchocho, said on Monday.
 
"Like all other transactions, these projects were subjected to the Bank's environmental appraisal guidelines to ascertain their impact towards the environment. After a thorough environmental analysis conducted on these projects, we are confident that investment in the solar energy programme would have less adverse impact on climate change and the environment," said Nchocho.

This loan facility signifies the Bank's commitment to support government's national priorities through financing infrastructure programmes that are geared to improve the security of energy supply, which is needed to accelerate the economic growth of South Africa.