EIB finances DBSA’s R1,4 billion renewable energy project in Northern Cape

The Development Bank of Southern Africa (DBSA) is pleased to announce that it signed with the European Investment Bank (EIB) a R1,4 billion finance contract to support the development of the !Ka Xu 100 MW concentrated solar power in the Northern Cape, South Africa.

The South African energy sector is faced with a number of challenges. And as the DBSA, we are encouraged by the EIB’s trust and confidence towards our investment strategy in supporting South Africa's power generation infrastructure to improve the security of energy supply and optimise the energy mix which is much needed to accelerate the economic growth of South Africa.

Once fully developed the !Ka Xu concentrated solar thermal plant will collect solar energy using parabolic trough technology and convert it into electricity in the steam cycle. Through a built-in molten salt storage system or the thermal energy storage (TES), the plant will have capacity to store energy during off peak hours and dispatch it during peak hours.

Like all other transactions appraised for funding, this project was subjected to the Bank’s environmental appraisal guidelines to ascertain its impact on the environment. The DBSA is confident that this investment in the renewable energy programme will have positive contribution towards efforts to minimise adverse impact of energy generation on the environment and in particular on climate change.

Background information

European Investment Bank (EIB)

The European Investment Bank is the long-term lending institution of the European Union owned by its member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Development Bank of Southern Africa (DBSA)

The Development Bank is a leading Development Finance Institution (DFI) in Africa South of the Sahara, playing the roles of Financier, Advisor, Partner, Implementer and Integrator. The Bank maximizes its contribution to sustainable development in the region by mobilising financial, knowledge and human resources to support Government and other development role-players in improving the quality of life of people in the region through funding infrastructure projects; accelerating the sustainable reduction of poverty and inequity; and promoting broad-based economic growth and regional economic integration.”

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