Mohan Vivekanandan – Group Executive: Client Coverage and Mathapelo Malao Head of Energy, Environment, and ICT at DBSA

Due to low investments in new generation capacity and asset maintenance, South Africa still faces challenges in producing reliable energy. Since 2003, the government has included private sector involvement in the energy industry through the Independent Power Producer (IPP) Programme.

The Development Bank of Southern Africa (DBSA) is strategically positioning itself to embrace the recently unveiled Renewable Independent Power Producer Programme (IPPPP). This initiative, led by the Department of Energy, introduces three dynamic procurement programmes under the broader umbrella of the Renewable Independent Power Producer Programme (IPPPP). The goal of the programmes is to secure 7615 MW of generation capacity, spanning across renewable energy, gas, and battery storage technologies.

Aligned with the Ministerial Determinations set forth in the 2019 Integrated Resource Plan (IRP2019), the three Bid Windows entail the procurement of the following:

• 5000 MW of renewable energy in the seventh round of the Renewable Energy IPP Procurement Programme (REIPPPP) Bid Window 7 (BW 7).
• 2000 MW from Gas to Power in the inaugural round of the Gas IPP Procurement Programme (GASIPPPP BW 1).
• 615 MW from the second round of the Battery Energy Storage IPP Procurement Programme (BESIPPPP BW 2).

“The Energy division at Bank stands ready to help South Africa’s Independent Power Producer market and Black Economic Empowerment investors with the necessary infrastructure financing,” said Mathapelo Malao – Head of Energy, Environment, and ICT at DBSA.

Malao added “The experience and lessons that the Bank has cultivated since the inception of the REIPPP have been extremely invaluable. More importantly, the success of the REIPPPP has strengthened the DBSA’s position in the energy infrastructure landscape profiling the Bank as a leader in the space.”

In February 2019, the DBSA received the African Renewable Energy Programme Award.  This award recognises innovativeness and scale, with event organisers noting that “the achievement signified the DBSA’s growing involvement in energy project financing and raises the institution’s profile among its peers in the industry”. The Bank, a pivotal player in South Africa’s energy landscape, has been actively engaged in the REIPPPP since its pre-official launch in 2011. The DBSA is also the key funder in different projects under the REIPPP and has invested over R12.4-billion into different projects.

Collaborating with the Department of Energy, National Treasury, and the Independent Power Producer (IPP) Office, the Bank’s role of contributing to the transformation of the energy sector by funding various projects under the Renewable Energy Independent Power Producer Programme (REIPPP), including enabling B-BBEE parties and local community trusts is crucial as it is mandated to promote economic growth as well as regional integration for sustainable development projects and programmes across the African continent.

Mohan Vivekanandan – Group Executive: Client Coverage said “Having financed numerous REIPPPP projects over the years, including gas-fired power plants like Jesper PV Solar Plant, Kaxu Solar One, Oya Energy Hybrid Facility, and recently funded Umoyilanga Hybrid Project, that aims to provide 75 MW of net dispatchable capacity from integrated wind, solar PV, and battery storage systems and procure 2000 MW of new generation capacity. With this new initiative, DBSA plans to improve its pipeline for gas finance.”

The recent announcement by the Department of Energy to procure 7615 MW, has generated renewed hope for the country and the Bank is committed to accelerating energy access and ensuring a just transition to low-carbon economies and managing other impactful energy programmes like the Climate Finance Facility (CFF) and the Embedded Generation Investment Programme (EGIP).

ENDS