- The New Development Bank (NDB) has approved $2.3 billion (R41bn) for 10 renewable energy projects.
- The NDB’s approach to financing green projects aligns closely with South Africa’s national sustainability goals in several ways.
The New Development Bank (NDB) has approved $2.3 billion (R41bn) for 10 renewable energy projects covering technologies such as solar PV, onshore and offshore wind, hydropower, biomass, and hybrid systems with storage.
These renewable energy projects will install a total generation capacity of 2.8 GW, which will help avoid more than 4 million tons of CO2 emissions a year.
Regarding power transmission, the bank provided $180 million for Eskom to develop grid connection infrastructure in South Africa. This loan aims to reduce South Africa’s reliance on fossil fuels. It will enhance South Africa’s capacity for renewable energy while achieving sustainable growth. It also aligns with the NDB’s focus to support projects to develop renewable energy sources.
The project will integrate 670MW of renewable energy into the grid by Eskom. The transmission lines will help to meet the electricity demand in the implementation regions and provide a foundation for future renewable energy development.
The environmental and social impacts of the project are contained in the Environmental Management Plan (EMP) which includes proposed mitigations to ensure minimal residual risk. Eskom monitors and ensures the implementation of the EMP. The NDB’s approach to financing green projects aligns closely with South Africa’s national sustainability goals in several ways.
NDB-funded projects contribute to South Africa’s commitment under the Paris Agreement to reduce greenhouse gas emissions by 42 per cent by next year. The Greenhouse Gas Emissions Reduction and Energy Sector Development Project, supported by a $300m NDB loan, is a prime example of this alignment.
The NDB’s approach supports South Africa’s Just Energy Transition Partnership (JETP), which aims to accelerate the economy’s decarbonisation while ensuring a just transition for affected communities. The NDB has pledged $3bn over five years to support the JETP. The bank’s focus on sustainable infrastructure and green energy aligns with the JETP’s objectives.
The NDB’s approach includes knowledge sharing and capacity building, supporting South Africa’s goal of developing local expertise in green technologies and sustainable development practices. The NDB supports South Africa’s transition to a low-carbon, climate-resilient economy by focusing on green projects, as outlined in the country’s National Development Plan 2030.
These alignments also ensure that the NDB’s investments contribute to specific project outcomes and support South Africa’s broader sustainability agenda, fostering long-term environmental, social, and economic benefits.