Norfund, CDC spend US$ 39m in 2.4 GW of South African renewables

Mar 8, 2022 12:44 PM ET
  • Norway's Norfund and UK growth finance organization CDC have actually collaborated to money 2.4 GW of eco-friendly deployment in South Africa via a ZAR600 million (US$ 39 million) investment in renewables business H1 Capital.
Norfund, CDC spend US$ 39m in 2.4 GW of South African renewables
Image: Scatec

Norwegian state-owned mutual fund Norfund is giving ZAR360 million (US$ 23.4 million) while CDC, quickly to be renamed British International Investment (BII), has actually made ZAR240 million (US$ 15.5 million) available.

Norfund stated the investment would certainly support South Africa's clean energy objectives as well as make it possible for H1 Capital to fund the growth of 2.4 GW of solar and also wind projects, generating 6,400 GWh a year.

H1 Capital was picked because of its "competence on numerous renewable power projects and its deep commitment to energy sustainability," claimed Norfund, which is investing in H1 Capital using Norway's brand-new climate fund announced at COP26 late last year.

"I am positive that this first investment under the brand-new environment required will certainly be the initial of numerous equally helpful partnerships that contribute to a just transition in South Africa and also in the various other markets that Norfund intends to prioritise," stated Norwegian Minister of International Growth, Anne Beathe Tvinnereim.

The UK's Minister for Africa, Vicky Ford, stated the US$ 16 million of investment in H1 Capital "shows our continued commitment to remaining a strong partner for Africa".

"Investments such as this declare as well as follow on from the dedication we have actually made to South Africa's low-carbon transition via the US$ 8.5 billion multi-donor Just Energy Transition Partnership," included Ford.

The Just Energy Transitions Partnership was announced in November and also sees the UK, US as well as the EU develop a new vehicle to sustain as well as speed up the decarbonisation of South Africa's economic climate, with a specific focus on the electrical power system.

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