- DBSA is soliciting proposals to fund solar PV and wind power projects under EGIP in South Africa
- Projects should range between 10 MW to 75 MW capacity and must have 15-year take-or pay PPAs
- Only those projects that address climate mitigation and have secured all permits and licenses will be considered for the funding
The Development Bank of South Africa (DBSA) has launched a call seeking proposals for solar PV and onshore wind power projects in the country to avail of funding under the Embedded Generation Investment Programme (EGIP). It is an inaugural call from the bank.
Proposals are solicited from independent power producers (IPP) operating in South Africa to implement grid connected solar PV and wind energy projects that address climate mitigation in the country. Project capacity may range between 10 MW to 75 MW.
To be considered for this call, projects need to have entered into take or pay power purchase agreements (PPA) with commercial, industrial or municipal off-takers for a minimum of 15 years. These must have completed feasibility studies including having obtained all permits and licenses.
Projects desirous of availing the facility will be selected through a competitive process while factoring in climate impact and gender mainstreaming potential of the project. An Environmental and Social Risk Assessment will be performed on eligible projects based on the Environmental and Social Safeguard Standards of the bank.
Issued on July 31, 2021, the bank will accept applications to this tender till September 30, 2021. Details of the terms and conditions are available on DBSA’s website.
The EGIP is a programme developed with the Green Climate Fund (GCF) and the DBSA both pooling in $100 million each towards its implementation. Of the $200 million, close to $84 million will be used 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, according to the bank.
It added, “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.”