Page 12 - AfrElec Week 01 2021

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technical assistance in setting up a mini-grid increase green financing in cleaner economy.”
acceleration initiative to meet the needs of the FC estimates South Africa’s climate-
continent’s fast-evolving renewable mini-grid South Africa smart investment potential across renewable
industry. energy and urban infrastructure, including
The Africa Mini-Grid Market Acceleration IFC, a member of the World Bank Group, and rail transport, electric vehicles, and green
Programme (AMAP), which aims to boost Nedbank have partnered to increase financing buildings, amounts to $588bn through 2030.
energy access in remote regions and enhance for renewable energy projects in South Africa, The government plans to more than double
climate resilience throughout Africa, helping the country transition to cleaner the country’s power capacity by 2030, with
will include three core components: the forms of power, reduce greenhouse gas renewables making up as much as 20 percent
implementation of a new and standardised emissions, and create jobs in the renewables of the mix.
framework for national-scale Mini-Grid sector. IFC
Acceleration Programmes (MAPs) in four IFC will provide Nedbank Limited, a
countries; the design and enhancement wholly owned subsidiary of Nedbank Group,
of financial de-risking solutions; and with a loan of up to $200mn to help it expand SOL AR
support for knowledge, innovation, and its green finance operations and grow its
skills development activities, including the climate portfolio by funding renewable energy Senegal launches tender for
continuation of the bank’s Green Mini-Grid projects.
Help Desk website. The partnership is part of IFC’s broader 133 mini PV plants
The bank’s Vice President for Power, objective to develop South Africa’s
Energy, Climate and Green Growth, Dr. Kevin climate finance market and to support the Senegal‘s Rural Electrification Agency (ASER)
Kariuki, said: “Mini-grids are an integral and Government of South Africa’s plan to shift has launched a tender for the construction
increasingly important feature of the energy to a lower carbon economy. South Africa of 133 mini solar power plants aimed at
access solution, not just in terms of providing has set the goals of reducing greenhouse- powering 177 rural villages located mostly in
lights to households, but also in ensuring gas emissions by 42 percent by 2025 and the eastern part of the country.
that underserved populations have access to diversifying its electricity production to The projects are being financed by the
productive uses of energy to power inclusive reduce its reliance on coal by 2050. Islamic Development Bank (IDB) and the
and green economic growth. Nedbank is Africa’s first carbon-neutral Islamic Solidarity Fund for Development
“AMAP underscores the AfDB’s bank and in 2019 became South Africa’s first (ISFD).
commitment to strengthening Africa’s mini- commercial bank to launch a green bond on Interested developers will have time until
grids industry, which we see as a key driver for the Johannesburg Stock Exchange. January 19 to submit their offers.
accelerated energy access, climate resilience, Arvana Singh, Nedbank’s Head of The Senegalese government is targeting to
and a green post COVID-19 recovery.” Sustainable Financial Solutions, said “This reach universal access to electricity by 2025.
transaction continues to demonstrate This is expected to be achieved by expanding
Nedbank’s commitment to engage in the existing power grid and adding around
alternative climate finance mechanisms. 180 MW of off-grid generation capacity.
FINANCING These will further develop markets, and Around 88% of the interested remote villages
support projects which create positive impacts will be electrified through the grid expansion.
IFC, Nedbank partner to aligned to the United Nations Sustainable off-grid solar, the Senegalese government
In order to support the development of
Development Goals, in pursuit of Nedbank’s
commitment to building a greener and introduced in September a VAT exemption for

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