HomeIndustry SectorsEnergy EfficiencyRenewable energy funding mechanism for South Africa?

Renewable energy funding mechanism for South Africa?

15 July 2009 – The Industrial Development Corporation has published a request for expressions of interest for a study into appropriate funding models for energy efficiency and renewable energy investments in South Africa.

The study will be split into four modules:

  • The current ‘sustainable energy landscape and policy framework’
  • Assessment of potential demand by private sector participants in targeted investment segments
  • Structuring of the credit line
  • Structuring of bundled carbon-credit transactions

This tender comes as the IDC seeks to increase its involvement in the energy industry in South Africa, particularly renewable energy.

The IDC has been invited to participate in a number of projects including:

  • a 500-MW wind farm, in the Western Cape;
  • a R1-billion participation in Eskom’s R6-billion concentrating solar power project in the Northern Cape;
  • a smaller-scale solar-energy pilot project;
  • a R74-million for a 7,5-MW wood biomass IPP in George, and
  • a R5-million for a project to capture and flare methane gas at one of the largest pig farms in the province of Mpumalanga.

The study, which is supported by the French and German development agencies, Agence Française de Développement (AFD) and Kreditanstalt für Wiederaufbau (KfW), aims to develop a funding mechanisms to support the lowering of the country’s carbon footprint.

The deadline for responses to the tender is 27 July.