JOHANNESBURG, Sept 11 (Askume) – The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) said on Wednesday they would jointly lend an additional 200 million euros ($220.16 million) for renewable energy projects in South Africa.
The concessional financing comes in addition to the European Investment Bank and DBSA’s commitment to provide €400 million to support independent power projects in Africa’s most industrialised economy at the 2022 COP27 climate summit.
South Africa’s new energy minister promised in July to accelerate the transition from coal to renewables, while his predecessor’s opposition to rapid decarbonisation has blocked progress.
The country is one of the largest emitters of greenhouse gases in the world and relies heavily on coal for electricity generation, but renewable energy also has huge potential.
The European Investment Bank and the DBSA will lend an additional €100 million to support small and medium-sized renewable energy projects, particularly solar and onshore wind projects, the banks said in a statement.
The supported projects are expected to add 384 MW of renewable energy capacity, he said.
(1 USD = 0.9084 EUR)
