April 1 (Renewables Now) - The New Development Bank (NDB) has signed agreements for a couple of loans totalling USD 480 million (EUR 427m) that will aid in different ways the renewable energy industry in South Africa.
National financial intermediary Development Bank of Southern Africa (DBSA) will receive a loan of up to USD 300 million without a sovereign guarantee for the so-called Greenhouse Gas Emissions Reduction and Energy Sector Development Project, the goal of which is to support renewables and cut carbon dioxide (CO2) emissions in South Africa. DBSA will on-lend the received loan to identified sub-projects, within the fields of wind, solar and biomass energy.
At the same time, local utility Eskom Holdings SOC Limited has agreed a USD-180-million loan with sovereign guarantee from NDB to support the development of modern infrastructure to connect a total of 670 MW of renewables to the grid.
This project will bolster South Africa’s renewable energy production capacity while also achieving sustainable growth, the bank said in a statement.
(USD 1.0 = EUR 0.890)