DBSA calls for embedded generation project proposals
South Africa: The Development Bank of Southern Africa (DBSA) has announced plans to support embedded generation through construction of wind and solar plants.
Image source: ESI Africa
South Africa: The Development Bank of Southern Africa (DBSA) has announced plans to support embedded generation through construction of wind and solar plants.
The Embedded Generation Investment Programme (EGIP) is an initiative developed with funding from the Green Climate Fund (GCF) and the DBSA. The programme supports the implementation of solar PV and wind energy embedded generation projects developed by Independent Power Producers (IPPs) operating in South Africa.
The DBSA has matched GCF’s $100 M funding, thus ensuring there is a funding contribution of $200 M towards the implementation of EGIP from the two institutions. Approximately $84 M of the $200 M funding will be utilised to provide Broad-Based Black Economic Empowerment funding to enable the participation and ownership of local communities and small, medium and micro enterprises in renewable energy projects under the Programme.
The recent announcement to exempt embedded generation projects up to 100 MW from having to apply for generation licenses is an impetus for the implementation of EGIP and the various shovel ready embedded generation projects in the market.
The DBSA seeks to support embedded generation projects under the EGIP. The selection will be conducted through a competitive process. The DBSA has the sole discretion to respond to multiple agency objectives in making its selection, including climate impact and gender mainstreaming potential of the project.
A project may be eligible for funding support under the programme if its objectives are climate mitigation related. The projects should also provide co-benefits of a developmental nature. An environmental and social risk assessment will be performed on eligible projects based on the environmental and social safeguard standards of the DBSA.
Source: ESI Africa
#Development Bank of Southern Africa#Embedded Generation Investment Programme#South Africa#wind and solar plants