EGIP seeks to provide first loss facilities and Broad Based Black Economic Empowerment funding to support the implementation of embedded generation renewable energy projects in South Africa. The projects under EGIP will be implemented by private sector entities (in their capacity as Independent Power Producers and/or off-takers) and local municipalities (acting primarily as off-takers). The underlying Power Purchase Agreements (PPAs) under EGIP are not expected to be underpinned by Government Guarantees. A facility of approximately U$D200 million has been secured to implement solar photovoltaic and wind renewable energy projects in South Africa. “EGIP will crowd-in funding from various funders to kick start a new market for embedded generation in South Africa”, said Mpho Mokwele, Head: Project Finance at the DBSA.
The Call for Proposals follows a recent announcement by the President that embedded energy generation projects of up to 100MW will be exempted from applying for energy generation licenses.
The Call for Proposals opens on 4 August 2021 and will close on 31 September 2021. The link to submit proposals may be accessed here: https://www.dbsa.org/embedded-generation-investment-programme
Applications will be assessed through a competitive process, specifically targeting projects that are in advanced stages of development. The DBSA has the sole discretion to respond to multiple agency objectives in making its selection, including climate impact and gender mainstreaming potential for the project.
For more information about the EGIP, visit https://www.dbsa.org/embedded-generation-investment-programme