The New Development Bank (NDB) and DBSA have signed a $300 million Greenhouse Gas Emissions Reduction and Energy Sector Development Project loan agreement.
The NDB pledged to provide a loan without a sovereign guarantee to the national financial intermediary DBSA.
Under the Greenhouse Gas Emissions Reduction and Energy Sector Development Project, BRICS Bank seeks to support renewable energy projects in South Africa and help the economy to shift to a more sustainable energy path.
The project is expected to bring significant developmental impacts through the subprojects, increase in generation capacity from renewable energy sources and increase in the efficiency of the energy sector in South Africa.
Additionally, BRICS Bank also signed a $180 million Renewable Energy Integration and Transmission Augmentation Project loan agreement with Eskom.
The NDB’s Project Finance Facility (PFF) will be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects.
Similarly, the PFF will also support renewable energy development and reduce the country’s reliance on fossil fuels.
The project aims to integrate a total of 670 MW of renewable energy into the Eskom’s grid.
Source: Banker Africa