- The NDB committed $2.3 billion to ten renewable energy projects, expected to generate 2.8GW and reduce CO2 emissions by over 4 million tons annually.
- Over five years, the bank pledged $3 billion to support South Africa’s Just Energy Transition Partnership (JETP) and its decarbonisation goals.
- NDB investments in water infrastructure, renewable energy, and capacity building align with South Africa’s sustainability plans and contribute to long-term environmental and economic benefits.
The New Development Bank (NDB) committed $2.3 billion (R41 billion) to ten renewable energy projects. These projects will span solar PV, onshore and offshore wind, hydropower, biomass, and hybrid systems with storage. They will generate 2.8GW of power and cut global CO2 emissions by over 4 million tons annually.
The NDB announced this during its Ninth Annual Meeting in Cape Town, which runs until Saturday. The theme, “Investing in a Sustainable Future,” emphasises the bank’s focus on addressing global challenges through sustainable development.
Boosting South Africa’s Renewable Energy
In April 2016, the NDB provided $180 million to Eskom for grid connection infrastructure. This funding aims to reduce South Africa’s reliance on fossil fuels by integrating 670MW of renewable energy into the grid. This project will meet growing electricity demands and support future renewable energy initiatives.
Eskom’s work aligns with South Africa’s Integrated Resource Plan 2019, which targets adding 14.4GW of wind power and 6GW of solar energy by 2030. The NDB also supports South Africa’s Paris Agreement commitment to cut greenhouse gas emissions by 42% by 2025 through its $300 million loan for the Greenhouse Gas Emissions Reduction and Energy Sector Development Project.
Supporting a Just Energy Transition
The NDB supports South Africa’s Just Energy Transition Partnership (JETP), which seeks to decarbonise the economy while ensuring a fair transition for affected communities. The bank has pledged $3 billion over the next five years to fund JETP initiatives.
Andrew Etzinger, General Manager for Energy Market Services at the National Transmission Company South Africa (NTCSA), confirmed that NTCSA has not yet accessed JETP funding. However, the NDB’s investments in sustainable infrastructure and green energy align with JETP’s objectives.
Investing in Water Infrastructure
The NDB also invests in South Africa’s water sector with a $179.2 million loan for water supply and sanitation projects. This investment aligns with the country’s National Water and Sanitation Master Plan and addresses critical sustainability challenges.
Building Local Expertise
The NDB’s commitment extends beyond financing, focusing on knowledge sharing and capacity building. The bank supports South Africa’s goal of developing local expertise in green technologies and sustainable practices. These efforts align with the National Development Plan 2030, which aims to transition South Africa to a low-carbon, climate-resilient economy.
The NDB’s investments deliver long-term environmental, social, and economic benefits for South Africa. The bank supports the country’s sustainability agenda by funding renewable energy, water infrastructure, and capacity building. The NDB’s focus on green projects underscores its dedication to fostering sustainable development in South Africa and beyond.