Home to Africa’s largest economy, South Africa is also the world’s eighth largest per capita emitter of greenhouse gases. To ensure growth that is greener and less dependent on coal, South Africa is investing in its vast wind, solar, and energy efficiency potential.
Source: World Bank
In line with national goals to diversify its energy mix, South Africa has created a $500 million CTF investment plan that is helping to overcome high up-front capital costs, first-mover risks, and other barriers to public and private investment in wind, solar, and energy efficiency. CTF concessional financing has been essential in bridging the cost gap relative to coal power generation and providing positive incentives for national utility Eskom and its lenders to proceed with large scale projects.
These include developing 100 MW of wind and 100 MW of concentrated solar power (CSP) generation capacity. The CTF is also supporting some of the first independent power producers in the country, including the 100 MW KaXu CSP plant, the first operational private sector utility-scale CSP plant in the developing world.
The national power sector relies on coal for over 85% of its electricity generation
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Energy Efficiency Program||FUNDClean Technology Fund||COFINANCING (USD MILLION) 2.27||FUNDING (USD MILLION) 8||MDBIFC|
|Eskom Renewable Support Project||FUNDClean Technology Fund||COFINANCING (USD MILLION) 250||FUNDING (USD MILLION) 598||MDBIBRD|
|Eskom Renewable Support Project||FUNDClean Technology Fund||COFINANCING (USD MILLION) 100||FUNDING (USD MILLION) 1225||MDBAFDB|
|Sustainable Energy Acceleration Program||FUNDClean Technology Fund||COFINANCING (USD MILLION) 95.19||FUNDING (USD MILLION) 2184||MDBIFC|
|Sustainable Energy Acceleration Program (SEAP)||FUNDClean Technology Fund||COFINANCING (USD MILLION) 43.5||FUNDING (USD MILLION) 100||MDBAFDB
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.