Page 28 - Energize April 2022

NEWS

International funders join forces to back

South Africa’s RE development

orfund, the Norwegian clean energy solutions which enhance the participation of the wider communities in the
investment fund for developing economy. This, in turn, helps to transform the lives and livelihoods of marginalised groups
Ncountries, and CDC Group, the in South Africa.
UK’s development finance institution This investment in H1 Capital demonstrates the UK’s and Norway’s commitments
(DFI), have announced their commitment to act on pledges made at COP26, viz., scaling climate finance to Africa and deepening
to invest R600-million (R360-million by collaboration on solutions which will meet the continent’s needs and address the
Norfund and R240-million by CDC) in H1 continent’s climate emergency. At the summit, Norway announced the creation of a new
Capital – a South-African black-owned climate investment fund to be managed by Norfund, and this capital to H1 Capital will be
and managed renewables investment the first investment under the new fund.
and development company. This commitment also contributes to the UN’s sustainable goals (SDG 7) on affordable
The transaction represents a joint and clean energy, on good jobs and economic growth (SDG 8) and climate action (SDG
vision by the DFIs to mobilise climate 13). The transaction also qualifies for the 2X challenge, which seeks to support businesses
finance to Africa and back clean which provide women in emerging economies with access to leadership opportunities,
infrastructure projects across the quality employment, and products and services which enhance their economic
continent. The investment from Norfund participation and inclusion. Moreover, the investment aligns with South Africa’s ambitions
and CDC, which will soon be renamed and steps toward securing a just transition to a low-carbon economy.
British International Investment (BII),
will help to improve access to clean Statements from the signatories
and affordable energy in South Africa. Tellef Thorleifsson, the CEO of Norfund, said, “We are honoured that the Norwegian
The increase in clean energy supply government has entrusted us with the responsibility of managing the new climate
will provide consistent power to cities, investment fund. We are delighted to be able to put the money to work quickly and
villages, townships, businesses and effectively through what will be the first investment under the new mandate, with our
farms, thereby increasing productivity existing partners in H1 and CDC, in projects in line with the energy plans of the South
and encouraging economic growth. African government”.
South Africa has tremendous Anne Beathe Tvinnereim, the Norwegian minister for international development, said,
economic potential. The government has “I believe that the new Norwegian climate investment fund managed by Norfund will be
set an ambitious target to generate 20 our most efficient tool to help accelerate the global clean energy transition, making it
GW of new renewable capacity over the possible to base necessary development on renewable energy and limit the climate crises’
next decade, to address power shortages devastating impacts on the world’s poor. I am confident that this first investment under
and decarbonise the power generation the new climate mandate, will be the first of many mutually beneficial partnerships that
fleet, where 86% of the country’s energy
mix is thermal.
This investment will support the
country’s clean energy goals, as it will
enable H1 Capital to fund a pipeline
of over 2,4 GW of new wind and solar
projects, generating approximately 6400
GWh per year. This will contribute to
avoiding annual emissions of 6,2 million
tons of CO2 and help to accelerate South
Africa’s transition to clean energy.
H1 Capital is a development partner
of choice, owing to the company’s
expertise on several renewable power
projects and its deep commitment
to energy sustainability. H1 Capital,
a broad-based black economic
empowerment (BBEE) company, applies
an inclusive approach to provide

energize | April 2022 | 26