August 20 (Renewables Now) - UK Climate Investments (UKCI) has agreed to invest around GBP 14 million (USD 17m/EUR 15.3m) to back 250 MW of wind projects in South Africa’s Northern Cape and Western Cape provinces, along with a hydro scheme.
The financing will be provided to H1 Holdings, a majority black-owned and managed renewable projects developer, UKCI said on Monday, adding that the funds will be disbursed through an innovative funding mechanism that aims to support Black Economic Empowerment (BEE) entities. More specifically, the investment will go to support the development of the 140-MW Kangnas wind project in Northern Cape and the 110-MW Perdekraal East wind project in Western Cape province.
According to the press release, “critical financing” will be awarded for a 4-MW hydropower project in Free State province, as well.
The projects are seen to be finalised by the end of next year, generating electricity for about 200,000 homes annually and mitigating nearly 844,000 tonnes of carbon dioxide (CO2) emissions.
“Our partnership with H1 Holdings supports the country’s transition to a new energy mix – promoting cleaner growth in southern Africa’s largest economy whilst stimulating economic development in rural areas and supporting increased BEE participation in the renewables sector,” said Richard Abel, managing director of UKCI.
UKCI is a joint venture between the Green Investment Group (GIG) and the British government and is managed by Macquarie Infrastructure and Real Assets.
(GBP 1.0 = USD 1.212/EUR 1.094)