https://www.engineeringnews.co.za
Africa|Coal|Energy|Power|Projects|Renewable Energy|Services|Solar|Sustainable|Power Generation|Products|Solutions|Infrastructure
Africa|Coal|Energy|Power|Projects|Renewable Energy|Services|Solar|Sustainable|Power Generation|Products|Solutions|Infrastructure
africa|coal|energy|power|projects|renewable-energy|services|solar|sustainable|power-generation|products|solutions|infrastructure

Norfund, CDC commit R600m towards wind, solar energy projects in South Africa

At the signing ceremony, from left is Scatec sub-Saharan Africa GM Jan Fourie, CDC Group coverage director and South Africa head Thithi Kuhlase-Maseko, H1 Holdings CEO Reyburn Hendricks, Norfund clean energy VP Bjørnar Baugerud and Norway International Development Minister Anne Beathe Tvinnereim.

At the signing ceremony, from left is Scatec sub-Saharan Africa GM Jan Fourie, CDC Group coverage director and South Africa head Thithi Kuhlase-Maseko, H1 Holdings CEO Reyburn Hendricks, Norfund clean energy VP Bjørnar Baugerud and Norway International Development Minister Anne Beathe Tvinnereim.

3rd March 2022

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

Font size: - +

Norwegian investment fund for developing countries Norfund has committed to invest R360-million in South African renewables investor and developer H1 Capital, while UK development finance institution (DFI) CDC Group will commit R240-million.

The transaction represents a joint vision by the two DFIs to mobilise climate finance to Africa and back clean infrastructure projects across the continent.

The investment from Norfund and CDC, which will soon be renamed British International Investment, will help to improve access to clean and affordable energy in South Africa.

The increase in clean energy supply will provide consistent power to South African cities, villages, townships, businesses and farms, thereby increasing productivity and encouraging economic growth.

It will also support South Africa’s clean energy goals, as it will enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects, generating about 6 400 GWh/y. This will contribute to avoiding emissions of 6.2-million tonnes of carbon dioxide a year and help to accelerate South Africa’s transition to clean energy.

Norway International Development Minister Anne Beathe Tvinnereim says the new Norwegian climate investment fund, managed by Norfund, will be the government’s most efficient tool to help accelerate the global clean energy transition.

This will enable development of renewable energy and limit the climate crisis’ devastating impacts on the world’s poor, she adds.

In a joint statement, Norfund and CDC Group state that South Africa has tremendous economic potential, with government setting an ambitious target to generate 20 GW of new renewable capacity over the next decade to address power shortages and decarbonise South Africa’s power generation fleet.

Currently, coal contributes as much as 86% of South Africa’s energy generation.

“South Africa's target to generate 20 GW of new renewable capacity over the next ten years is indicative of the country’s bold steps toward securing a net-zero future for itself,” says UK Minister for Africa Vicky Ford.

In this regard, the UK government plans to invest $16-million in H1 Capital.

“Investments like this reaffirm and follow on from the commitment we have made to South Africa’s low-carbon transition through the $8.5-billion multi-donor Just Energy Transition Partnership,” she adds.

Further, the parties state that the investment in H1 Capital demonstrates commitment by the UK and Norway to act on pledges made at COP26 of scaling climate finance to Africa and deepening collaboration on solutions that will meet Africa’s needs and address climate change.

At the summit, Norway announced the creation of a new climate investment fund to be managed by Norfund, and this capital to H1 Capital will be the first investment under the new fund.

Norfund and CDC Group’s commitment also contribute to United Nation’s Sustainable Development Goal (SDG) seven – affordable and clean energy, SDG eight – good jobs and economic growth, and SDG 13 – climate action.

The transaction also qualifies for the 2X Challenge, which seeks to support businesses that provide women in emerging economies with access to leadership opportunities, quality employment and products and services that enhance their economic participation and inclusion.

Norfund CEO Tellef Thorleifsson says the company is “delighted” to put money to work quickly and effectively through what will be the first investment under the new mandate, with Norfund’s existing partners in H1 and CDC, in projects in line with the energy plans of the South African government.

CDC Group CE Nick O’Donohoe says the investment marks another key step toward fulfilling the group’s pledge to devote greater capital to fund clean infrastructure and to support markets like South Africa on their path toward a just transition.

“This investment signals our strengthened relationship with South Africa and clearly signals Britain’s commitment to help accelerate economic productivity and inclusive growth for Africa's green recovery.”

“H1 hopes that the partnership fostered with Norfund and CDC can be replicated with other players and projects in sub-Saharan Africa,” says H1 Capital CEO Reyburn Hendricks.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.131 0.188s - 164pq - 2rq
Subscribe Now