The Development Bank of Southern Africa (DBSA) has approved loan facilities worth
R9,668.50 billion (US$980 million) earmarked
for 13 solar projects in South Africa. Combined,
the projects have a total capacity of 762.6MW.
Of the
13 projects, eight are PV projects, four are
concentrated solar power (CSP) projects and
one is a concentrated photovoltaics (CPV) project.
The eight PV projects — which will all be built
on the Northern Cape bar one which will be
located in the Free State — have a combined
capacity of 426.6MW and require an investment
of R3,238.5 billion.
The projects
— which are being built in response to the
country’s new Renewable Energy Independent
Power Producer Program (REIPP) initiative —
will help bring South Africa one step closer
to its national target of producing 3,725 MW
of renewable energy by 2016.
The approval
of the loans also demonstrates DBSA’s commitment
and support for the cause. Group Executive
for Investments at DBSA, TP Nchocho, said,
“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.”
He added:
“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.”
DBSA has
not been the only finance institute to recognize
the solar potential in South Africa. In September
the Overseas Private Investment Corporation
(OPIC) in the US approved US$250 million for
OPIC’s first solar power project in South Africa.
DBSA has approved loan facilities worth R9,668.50 billion (US$980 million) earmarked
for 13 solar projects in South Africa. Image: Mister-E