Investec has joined forces with the European Investment Bank to establish a funding facility that will promote energy efficiency and the generating of clean energy in South Africa. The venture will be rolled out to support various kinds of renewable energy projects across the country.

The new funding facility was announced as part of developments at the 17th Conference of the Parties, otherwise known as the COP17 conference, currently taking place in Durban.

Both the European Investment Bank and Investec will contribute 50 million Euros to the venture that will focus on renewable energy projects in the country.

Investec’s Fazel Moosa said in Durban yesterday:

This facility … has the potential to help the government and industry transform SA’s renewable energy efforts.

Investec’s global and local experience in project finance for the renewable energy sector, as well as its current investment pipeline, were instrumental in bringing this deal together.

Traditionally, there haven’t been many major renewable energy projects in the country but, as part of the government’s Green Economy Accord, it’s expected we may see the government begin to launch 53 proposed projects involving capital expenditure of more than R64 billion as early as next week.

Richard Willis, spokesman for the EIB, said the Investec venture was the result three years’ hard work. Continuing, he explained that the benefits of EIB funding was that it used loans that had more favourable interest rates than traditional banking institutions, and that these loans generally ran over longer periods too.

The EIB is also backed by its major European Union member state shareholders.

Mr Moosa explained:

Does SA have the resources for wind and solar power? The answer is yes. Is it financially feasible to have these plants here? Yes it is.

The government’s target of having 10% of electricity generated from renewable energy is not unsustainable. The government and the private sector need to continue to work together on this.

Investec’s commitment to renewable energy provision in South Africa has already been proven with three wind power operations in the Western Cape over the past four years, as well as funding for solar, wind and hydroelectric plants in other parts of the world.

They also have two solar projects currently being considered by the government.

[Source: BusinessDay]