South Africa is set to receive US $300 million boost from the Development Bank of Southern Africa(DBSA) and New Development Bank (NDB) after they signed a loan agreement to facilitate the Greenhouse Gas Emissions Reduction and Energy Sector Development project in the country.
The agreement was reached at the fourth yearly meeting of the NDB in South Africa and signed by NDB VP and COO Xian Zhu and DBSA, CEO Patrick Dlamini. NDB agreed to provide the loan to DBSA without a sovereign guarantee and will be in form of a two-step loan to aid DBSA’s sub projects in solar, wind and biomass energy sectors.
Sustainable energy path in South Africa
Greenhouse Gas Emissions Reduction and Energy Sector Development project will aim to support renewable energy projects in South Africa as the country seeks to move to a more sustainable energy path through structural changeover of the energy sector with new developing renewable technologies.
Additionally the project’s objective is to facilitate investments in renewable energy that will reduce carbon dioxide (CO2) emissions in South Africa, as well as contribute to the power generation mix in line with South African government’s Integrated Resource Plan that seeks to immensely reduce greenhouse-gas emissions as indicated in the National Development Plan 2030.
The project is scheduled to have compelling developmental impacts through the sub projects indicated. The benefits of the project include social benefits like reduced Carbon Dioxide emissions, increased efficiency in the energy sector all over the country and also increased generation capacity of renewable energy sources.
The country will also benefit economically by opening up more job opportunities in the energy sector across the sub projects of gas, wind and biomass. In addition the project is expected to contribute in unlocking private sector investments and increase the availability of long term funds to aid projects in the energy sector all over the country.