Norfund, the Norwegian government’s investment fund for developing countries, and CDC Group, the UK’s development finance institution, will pour ZAR 600 million (USD 38.9m/EUR 34.7m) in a South African renewable energy developer with a pipeline surpassing 2.4 GW.
Norfund will invest ZAR 360 million through a new climate investment fund and CDC will pour ZAR 240 million into renewables investment and development platform H1 Capital, it was announced on Friday. They want to help improve access to clean and affordable energy in South Africa.
The fresh capital will enable H1 Capital to finance its pipeline of wind and solar projects. Once fully installed, those plants will generate around 6,400 GWh of electricity per year.
“This investment marks another key step toward fulfilling our pledge to devote greater capital to fund clean infrastructure and to support markets like South Africa on their path toward a just transition,” said Nick O’Donohoe, CEO of CDC Group.
South Africa aims to deploy 20 GW of new renewable capacity in the next 10 years in order to reduce electricity shortages and decarbonise its power generation fleet. At present, some 86% of the country’s power is sourced from thermal energy.
(ZAR 10 = USD 0.648/EUR 0.578)
Source: renewablesnow
