Norway and the United Kingdom (UK) will spend R600 million ($39 million) developing renewable-energy projects in South Africa to help fund the nation’s transition from coal-fired power generation to clean fuels.
South Africa depends on coal to generate more than 80% of its electricity through state-owned Eskom Holdings SOC Ltd.
The country secured $8.5 billion at COP26 to fund an energy transition that could become a model for developed nations to help finance similar plans in other developing countries.
Most of the Norwegian and UK funding will be used for projects H1 was awarded in South Africa’s fifth round of renewable-energy auctions. The company has a portfolio that includes wind, solar and hydro projects.
The deal marks a first investment by the Norfund-managed Climate Investment Fund, through which Norway plans to allocate more than $1 billion over five years. Britain invested through its CDC Group.
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