Funding Opportunity Announced For IPPs In South Africa

Development Bank Of Southern Africa Seeking Proposals From Solar PV & Onshore Wind Independent Power Producers To Avail Of Funding For Projects Developed Under Embedded Generation Investment Programme

Funding Opportunity Announced For IPPs In South Africa

While launching the call for funding for solar and wind projects, DBSA said the recent South African government’s exemption for embedded generation projects up to 100 MW from having to apply for generation licenses is an impetus for the implementation of EGIP. (Illustrative Photo; Photo Credit: Thep Photos/Shutterstock.com)

  • 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.”

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.Before joining our team, Anu worked in various positions at publications of the Times Group in New Delhi. As a Principal Correspondent, she conceptualized special features and supplements for both The Times of India and The Economic Times. While Anu delved deep into solar at TaiyangNews, environment topics have been close to her heart before. As Assistant Editor, she was responsible for launching Planet Earth for The Economic Times, a special series on environment. Before joining the Times Group, Anu was a Copy Editor at the Hindustan Times.Anu holds a Masters degree in Journalism and Mass Communications from the University of Rajasthan. She also studied at the Centre for Science and Environment in New Delhi on E-Outreach: New Media Technologies for Advocacy and Strategic Communication, Social Media

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