Norfund, CDC invest US$39m in 2.4GW of South African renewables

The development funds said the investment would support South Africa in achieving its climate goals. Image: Scatec

Norway’s Norfund and UK development finance institution CDC have teamed up to fund 2.4GW of renewable deployment in South Africa through a ZAR600 million (US$39 million) investment in renewables company H1 Capital.

Norwegian state-owned investment fund Norfund is providing ZAR360 million (US$23.4 million) while CDC, soon to be renamed British International Investment (BII), has made ZAR240 million (US$15.5 million) available.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Norfund said the investment would support South Africa’s clean energy goals and enable H1 Capital to fund the development of 2.4GW of solar and wind projects, generating 6,400GWh a year.

H1 Capital was selected because of its “expertise on several renewable power projects and its deep commitment to energy sustainability,” said Norfund, which is investing in H1 Capital via Norway’s new climate fund announced at COP26 late last year.

“I am confident that this first investment under the new climate mandate will be the first of many mutually beneficial partnerships that contribute to a just transition in South Africa and in the other markets that Norfund aims to prioritise,” said Norwegian Minister of International Development, Anne Beathe Tvinnereim.  

The UK’s Minister for Africa, Vicky Ford, said the US$16 million of investment in H1 Capital “demonstrates our continued commitment to remaining a strong partner for Africa”.

“Investments like this reaffirm and follow on from the commitment we have made to South Africa’s low-carbon transition through the US$8.5 billion multi-donor Just Energy Transition Partnership,” added Ford.

The Just Energy Transitions Partnership was announced in November and sees the UK, US and the EU create a new vehicle to support and accelerate the decarbonisation of South Africa’s economy, with a particular focus on the electricity system.

26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Sydney, Australia