- The GCF and DBSA have put up $200m to fund embedded generation projects in South Africa.
- Solar and wind projects between 10MW to 75MW qualify.
- Projects must have secured at least a 15-year PPA.
The Green Climate Fund (GCF) and the state-owned Development Bank of Southern Africa (DBSA) have launched a call for proposals to finance independent power producers (IPPs) interested in building embedded generation power plants. The proposals would be accepted as part of the Embedded Generation Investment Programme (EGIP), which will fund wind and solar projects. Both the DBSA and the GCF will put up $100 million each, totalling $200 million for the implementation of EGIP.
Both organisations state that $84 million will go towards providing “Broad-Based Black Economic Empowerment funding to enable the participation and ownership of local communities and small, medium and micro enterprises in renewable energy projects under the program.”
DBSA believes that the South African government’s recent increase of embedded generation projects from 10MW to 100MW would spur the implementation of EGIP. Accordingly, the DBSA will select 10MW and 75MW projects that have already secured at least a 15-year power purchase agreement with industrial or commercial off-takers. The deadline for submission of proposals for interested IPP is September 30.