The Development Bank of Southern Africa, along with Absa and Nedbank, will provide debt funding and BEE equity funding for three large-scale wind farms in the Eastern Cape. File Picture: Karen Sandison / Independent Newspapers
The Development Bank of Southern Africa (DBSA) has been appointed to act as a co-mandated lead arranger, along with Absa and Nedbank, to provide debt funding and BEE equity funding for three large-scale wind farms in the Eastern Cape.
The three wind farms will be for the commercial and industrial market.
The project will supply renewable energy of 330MW to Sasol and Air Liquide under a 20-year Power Purchase Agreement. The project capital expenditure will also include the construction of a transmission line of 120 km.
The sponsor for the renewable energy project is the Enel Green Power RSA and Perpetua Holdings consortium.
According to Lungile Tom, acting head of Project Finance, DBSA, the projects are expected to start operating in 2026 and will contribute towards energy supply, following Eskom’s energy constraints in the country.
Tom said that the project aligns with DBSA’s Embedded Generation Investment Programme (EGIP) and their commitment to promoting clean energy and sustainable development.
Mpho Mokwele, Group Executive, Transacting, DBSA said that the bank’s involvement in being a part of the solution to South Africa’s energy crisis shows their dedication to fulfilling their mandate to promote infrastructure development and foster economic growth in the region.
“Renewable energy projects such as these demonstrate our commitment to sustainability, thus building Africa’s prosperity,” Mokwele said.
IOL Business