- South Africa to receive funding for renewable energy development.
- Investments will see the deployment of 2400MW solar and wind capacity.
- Britain invested through its CDC Group.
The government of Norway and the United Kingdom is providing $39 million to develop renewable energy projects in South Africa. The funding is set to assist the nation’s transition from coal-fired power generation to clean fuels.
According to the committee’s joint statement, the countries’ development-finance institutions will help local renewables company, H1 Capital, build 2400MW of new wind and solar plants. The investment is in line with the commitment made by countries during the COP26 summit. South Africa secured $8.5 billion at COP26 to fund an energy transition that could become a model for developed nations to help finance similar plans in other developing countries.
Most of the Norwegian and UK funding will be used for projects H1 was awarded in South Africa’s fifth round of renewable-energy auctions. The company has a portfolio that includes wind, solar and hydro projects. This deal marks the first investment by the Norfund-managed Climate Investment Fund, through which Norway plans to allocate more than $1 billion over five years.