S. Africa Development Bank May Offer $401 Million for RenewablesTshepiso Mokhema
The Development Bank of South Africa may offer as much as 4 billion rand ($401 million) in additional funding for the government’s renewable energy program.
“It is early to tell, but we are looking at an addition of about 3 to 4 billion rand for the third and subsequent rounds,” Cyprian Marowa, general manager for infrastructure finance at DBSA, said in an interview at a biogas conference in Midrand yesterday. The bank supplied 6.7 billion rand for the first and second rounds, he said.
South Africa began awarding contracts to build wind, solar and biomass plants after chronic electricity shortages led to the suspension of mines and factories in 2008. The renewable-energy drive seeks to cut reliance on coal, which fires 80 percent of power generation.
“There are two kinds of citizens, those with an option to just hit the switch and get power and then there are those without an option in rural areas,” Marowa said.