Intl alliance to mobilise USD 8.5bn of decarbonisation funding for S Africa
The Mulilo Sonnedix Prieska PV. Source: Mulilo Renewable Energy. License: All Rights Reserved.
November 3 (Renewables Now) - A newly-announced multilateral partnership will mobilise an initial commitment of USD 8.5 billion (EUR 7.3bn) to help South Africa achieve its decarbonisation objectives, including an accelerated transition away from coal.
The so-called Just Energy Transition Partnership is a long-term partnership between the governments of South Africa, France, Germany, the UK and the US, along with the European Union. It will mobilise the above-mentioned sum through various mechanisms such as grants, concessional loans and investments and risk sharing instruments, including to mobilise the private sector.
According to the announcement, the alliance will seek to identify financing options for innovative technical developments and investments, including in relation to electric vehicles (EVs) and green hydrogen, to support green jobs creation.
“The United States, together with the UK, France, Germany and the EU is announcing a new partnership with South Africa to help transform their economy to a clean energy economy more quickly. Right now South Africa is the largest emitter in Africa due in large part to the heavy reliance on coal for power,” stated US President Joe Biden.
The partnership is open to other countries as well.
Last week, South Africa’s minister of mineral resources and energy, Gwede Mantashe, announced the names of 25 preferred bidders in the fifth round of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). All in all, the tender will result in the signing of contracts for 975 MW of solar and 1.6 GW of wind power generation.