Spain pledges €2.1 billion funding package for renewable energy and water infrastructure projects in South Africa

  • Bloomberg reports that Spain has pledged to provide a €2.1 billion funding package in the form of discounted loans, risk insurance and capital investments.
  • Madrid alone has promised to provide €15 million ($16.4 million) in grants for feasibility studies, according to Spanish Ambassador to South Africa Raimundo Robredo Rubio.
  • The conditions requires a 30% return to Spanish companies in the form of equity or procurement.

The funding will focus on projects in solar and wind energy, and will finance green hydrogen and electric vehicle production, as well as water and sanitation projects.

Related news: Cape Town is proposing desalination plants as its long term potable water security solution.

“This is the first time in history we have done something like this,” Robredo said in an interview.

According to Robredo, capital investment will be managed together with Cofides and the IDC, with clear exit prices and dates, Robredo said. He added that, while green projects would be fully financed, the deal requires a 30% return to Spanish companies in the form of equity or procurement.

The Spanish initiative follows a separate $8.5 billion funding package from the EU, the UK and the US commonly referred to as the Just Energy Transition Partnership (JETP). Read more

Author: Bryan Groenendaal

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Copyright Green Building Africa 2024.