European and Southern African Development Banks to lend an extra $220 million to clean energy projects

The European Investment Bank and Development Bank of Southern Africa announced on Wednesday that, together, they will lend an additional 200 millions euros ($220.16million) to renewable energy project in South Africa.

The EIB and DBSA have pledged 400 million euros at the COP27 Climate Summit in 2022 for independent power projects to be supported in Africa's most developed economy.

South Africa's energy minister pledged in July to speed up the transition to renewable energy, from coal. This was after his predecessor, who was opposed to rapid decarbonisation, halted progress.

It is a country that produces a lot of greenhouse gases because it uses coal to generate electricity. However, it has countless renewable energy resources.

In a joint statement, the EIB announced that it and DBSA would each lend an additional 100 millions euros to small and medium renewable energy projects. This includes solar and onshore winds.

They said that the projects supported by the program are expected to add new renewable energy capacity of 384 megawatts.

(source: Reuters)