A new joint venture between the UK’s Department for Business, Energy and Industrial Strategy (BEIS) and the Green Investment Group, owned by multinational investment giant Macquarie, will invest £14 million into clean energy projects across South Africa.
The announcement was made by UK Climate Investments (UKCI) and funding partners H1 Holdings, who will support the development of 254MWs in renewable energy projects in the country.
Projects included in the scope of the investment include the 4MW Kruisvallei Hydro project in the Free State province, the 140MW Kangnas Wind Farm, and the 110MW Perdekraal East Wind Farm, in the countries North and Western Cape provinces respectively.
All are expected to be completed by the end of 2020.
The projects will generate enough clean electricity to power 200,000 homes per year, and prevent approximately 844,000 tonnes of greenhouse gas emissions annually.
Skills development, a focal area for the country, will see 40% of construction, operations and maintenance staff from local communities.
Richard Abel, managing director of UKCI, said: “Over 90% of electricity generation capacity in South Africa currently relies on fossil fuels. Our partnership with H1 Holdings supports the country’s transition to a new energy mix – promoting cleaner growth in southern Africa’s largest economy whilst stimulating economic development in rural areas and supporting increased BEE participation in the renewables sector.”