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DBSA and GCF invite proposals for solar and wind projects in South Africa

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DBSA and GCF invite proposals for solar and wind projects in South Africa

The state-owned Development Bank of Southern Africa (DBSA) and the Green Climate Fund (GCF), have launched a call for proposals to provide financing to independent power producers (IPPs) interested in building embedded generation projects based on solar and wind.

The proposals would be accepted as part of the Embedded Generation Investment Program (EGIP), which will fund wind and solar projects. Both the DBSA and the GCF will put up $100 million each, amounting to $200 million for the implementation of EGIP.

According to the statement, both organizations state that about $84 million will be deployed to provide “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.”

Under its Embedded Generation Investment Program (EGIP), South Africa includes all power plants up to 10 MW in size. However, the DBSA has it that the South African government has reportedly raised this threshold to 100 MW.

“EGIP will crowd-in funding from various funders to kick start a new market for embedded generation in South Africa”, said Mpho Mokwele, Head Project Finance at the DBSA.

The selected projects must have secured power purchase agreements with industrial or commercial off-takers for a minimum of 15 years.

The proposed projects should have completed feasibility studies, with all relevant permits and licenses. Their capacity will range between 10 MW and 75 MW.

All interested South African IPPs will have until Sunday, September 31, 2021, to submit their proposals. The link to submit proposals may be accessed here.  Click here for more information.

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