South Africa’s commitment to renewable energy received a significant boost with the Development Bank of Southern Africa (DBSA) announcing a R17 billion ($1 billion) investment.
The funds will be directed towards 36 projects participating in the nation’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This announcement was made at the first day of the Continental Energy Investment Forum Inward Buying and Investment Mission currently underway in Johannesburg and Cape Town, South Africa.
The Inward Buying Mission is facilitating the exchange of energy expertise across Africa. It’s equipping energy leaders with the knowledge and resources needed to achieve their energy goals.
Mpho Kubelo, DBSA’s chief risk officer, said that energy has become their top priority while the bank invests in various infrastructure projects.
“The DBSA strategic approach is to guide financial instruments available for development finance projects on the continent,” Kubelo said.
This year, the DBSA focuses on attracting diverse investors to support energy infrastructure projects that align with national development plans and sustainability goals.
Kubelo emphasised the DBSA’s recognition of energy as crucial for industrializing any economy. The DBSA finances the development of energy technologies, generation, transmission, and distribution projects.
South Africa has recorded significant growth in renewable energy deployment in the last few years. Data from the International Renewable Energy Agency revealed that the country grew significantly by 959 percent to 10,623 megawatts (MW) capacity from 2012 to 2021.
The country envisaged adding 14,400MW of wind and 6,400MW of solar PV, including some additional 4,000MW of embedded generation and 2,000MW of storage by 2030.
Meanwhile, Elliott Monama, principal at the project preparation division at the DBSA, the bank possesses the technical skills necessary to assist with project preparation, turning ideas into feasible, bankable projects.
Read also: Renewable energy in Nigeria – Projects, investments, and future Prospects
The African Development Bank estimates that Africa needs $30-40 billion annually over the next six years to build energy infrastructure that ensures universal access to electricity and supports industrialization.
According to the 2022 Africa Energy Outlook, about 600 million Africans, or 43 percent of the continent’s population, lack access to electricity.
South Africa’s electro-technical sector has an estimated annual turnover of $58 billion and employs around 280,000 people, making it capable of supplying components necessary for the Just Energy Transition (JET).__tpx__
