The New Development Bank (NDB) has already approved a total of $2.3 billion (R41bn) for 10 renewable energy projects covering technologies such as solar PV, onshore and offshore wind, hydropower, biomass, and hybrid systems with storage.
These renewable energy projects are expected to entail the installation of a total generation capacity of 2.8GW, which in turn is expected to avoid more than 4 million tons of CO2 emissions a year.
The Ninth Annual Meeting of the NDB will be held in Cape Town from today to Saturday with the theme “Investing in a Sustainable Future” highlighting the bank’s commitment to addressing global challenges through sustainable development.
In terms of power transmission, the bank provided $180 million for Eskom for developing grid connection infrastructure in South Africa. This loan was approved in April 2016 and was aimed at reducing South Africa’s reliance on fossil fuels. It will enhance South Africa’s capacity for renewable energy while achieving sustainable growth.
It also aligns with the NDB’s focus to support projects aimed at developing renewable energy sources.
The project will integrate a total of 670MW of renewable energy to the grid by Eskom. The transmission lines help to meet the demand for electricity in the implementation regions and provide a foundation for future renewable energy development.
The environmental and social impacts of the project are contained in the Environmental Management Plan (EMP) which includes proposed mitigations to ensure minimal residual risk. Eskom monitors and ensures the implementation of the EMP.
Overall, the NDB’s approach to financing green projects aligns closely with South Africa’s national sustainability goals in several ways.
The NDB’s investments in renewable energy projects directly support South Africa’s Integrated Resource Plan 2019, which aims to increase the share of renewable energy in the country’s energy mix. For example, the NDB’s $180m loan for the renewable energy integration project aligns with the goal of adding 14.4GW of wind power and 6GW of solar power by 2030.
NDB-funded projects contribute to South Africa’s commitment under the Paris Agreement to reduce greenhouse gas emissions by 42% by next year. The Greenhouse Gas Emissions Reduction and Energy Sector Development Project, supported by a $300m NDB loan, is a prime example of this alignment.
The NDB’s approach supports South Africa’s Just Energy Transition Partnership (JETP), which aims to accelerate the decarbonisation of the economy while ensuring a just transition for affected communities. The NDB has pledges $3bn over five years in support of South Africa’s JETP.
The bank’s focus on sustainable infrastructure and green energy aligns with the JETP’s objectives.
Andrew Etzinger, the general manager for energy market services and international trader of the National Transmission Company South Africa (NTCSA), told Business Report that from an NTCSA point of view, they hadn’t accessed JETP funding as yet.
NDB investments in water infrastructure projects, such as the $179.2m loan for water supply and sanitation, align with South Africa’s National Water and Sanitation Master Plan, addressing critical sustainability challenges.
The NDB’s approach includes knowledge sharing and capacity building, supporting South Africa’s goal of developing local expertise in green technologies and sustainable development practices.
By focusing on green projects, the NDB supports South Africa’s efforts to transition to a low-carbon, climate-resilient economy, as outlined in the country’s National Development Plan 2030.
These alignments ensure that the NDB’s investments not only contribute to specific project outcomes but also support South Africa’s broader sustainability agenda, fostering long-term environmental, social, and economic benefits.
BUSINESS REPORT