- The Development Bank of Southern Africa (DBSA), has secured USD 200 million facility and is inviting all private sector entities and energy developers to submit proposals in response to South Africa’s Embedded Generation Investment Programme (EGIP).
- EGIP seeks to provide first loss facilities and Broad Based Black Economic Empowerment (BBBEE) funding to support the implementation of embedded generation renewable energy projects in South Africa.
- The projects under EGIP will be implemented by private sector entities (in their capacity as Independent Power Producers and/or off-takers) and local municipalities (acting primarily as off-takers).
- The underlying Power Purchase Agreements (PPAs) under EGIP are not expected to be underpinned by Government Guarantees.
“EGIP will crowd-in funding from various funders to kick start a new market for embedded generation in South Africa”, said Mpho Mokwele, Head: Project Finance at the DBSA. The Call for Proposals follows a recent announcement by the President that embedded energy generation projects of up to 100MW will be exempted from applying for energy generation licenses. Read more
Link to the Call for Proposal document HERE
Author: Bryan Groenendaal