UK Climate Investments (UKCI) supports clean energy projects in South Africa with US$16.9mn agreement
Yesterday, UK Climate Investments (UKCI) announced a US$16.9mn agreement with H1 Holdings to support the development of 254MW of clean energy projects in South Africa.
“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,” says Managing Director of UKCI, Richard Abel.
During close consultation between H1 Holdings and UKCI the two companies have developed an innovative funding mechanism to best provide the finance required throughout the development process.
“The South African Government recently underlined that secure energy supply is essential for the country’s development, and that they are committed to expanding the availability of renewable power. I’m delighted that the British Government is supporting this significant investment in three renewable energy projects, in partnership with H1 Holdings,” says British High Commissioner to South Africa, Nigel Casey.
Project completion is expected to be by the end of 2020, providing enough clean energy to power nearly 200,000 homes each year. UKCI estimates that during the lifespan of the projects, 844,000 tonnes of greenhouse gas emissions a year will be avoided.
In addition to providing cleaner energy, the projects are expected to stimulate rural development, by providing employment and training to at least 40% of construction, operations and maintenance staff from the local communities.