The renewable energy industry in South Africa has received a boost as British and Norwegian funds signed a memorandum of understanding to invest 600 million rands in its independent power programme.
On Thursday, The Norwegian Investment Fund, Norfund and UK development finance institution CDC Group signed a memorandum of understanding with broad-based black economic empowerment investment company H1 Capital to fund 2.4 GW of new wind and solar projects.
The Renewable Independent Power Producer Programme (REIPPP) is aimed at bringing additional megawatts onto the country’s electricity system through private sector investment in wind, biomass and small hydro, among others. When complete, it will generate 6,400 gigawatts of electricity. The increase in clean energy supply will provide consistent power to cities, villages, townships, businesses and farms, thereby increasing productivity and encouraging economic growth. The government of South Africa on its own has set a target of generating 20 gigawatts of renewable energy over the next time years to combat the incessant and decarbonise the power generation and distribution.
South Africa has had a power supply crisis since last year as a result of its public utility company Eskom‘s inability to generate and distribute sufficient electricity across the country. Just this week, its request for an upward review in its tariff was approved by the regulator in that country, NERSA. However, it only got approval to implement a maximum increase of 9.61%, far less than the 20% it was seeking.