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SA, France in green energy partnership

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 12 Jul 2016
The partnership follows president Jacob Zuma's state visit to France to advance relations between the countries.
The partnership follows president Jacob Zuma's state visit to France to advance relations between the countries.

South Africa's Industrial Development Corporation (IDC) and France's Agence Francaise de D'eveloppement (AFD) have partnered to finance a new "green credit line" with Nedbank, to promote the development of renewable energy in SA.

The partnership follows president Jacob Zuma's state visit to France in a bid to advance relations between the countries.

Zuma, currently on his second state visit to France to meet with French counterpart president Francois Hollande, indicated that increased industrialisation, localisation, job creation and skills development linked to the large infrastructure and energy contracts secured by French companies remained a top priority.

France is an important source of foreign direct investment in SA, with an estimated investment volume of more than R24 billion.

Both countries commend the significant participation of French companies to the energy mix in South Africa.

In a joint media statement yesterday on the occasion of the state visit to France, the Presidency says: "France and South Africa place great importance on cooperation in the energy field within their strategic partnership, as exemplified by the agreement on cooperation in the development of peaceful uses of nuclear energy signed in October 2014.

"French companies have acquired lucrative contracts in South Africa, in the infrastructure and energy programmes, amounting to billions of rand."

The countries give special attention to the development of a sustainable energy mix encompassing renewable and nuclear energies to reduce carbon emissions, Zuma noted.

Government envisages renewable energy will contribute 42% of the total generation capacity by 2030, according to the Integrated Resource Plan (IRP 2010).

The green credit line facility provides long-term low interest loans to renewable energy and energy-efficiency projects which face difficulties in accessing funding.

The partners will be in charge of lending directly to the projects according to criteria such as the size of the project and the environmental impact of the projects.

This technical assistance programme will be hosted by the South African National Energy Development Institute (SANEDI), as the institution is responsible for energy research and the promotion of green energy in SA.

It will support in identifying and assessing green projects. In addition, the technical assistance will assist the banks and SANEDI in capacity-building in the renewable energy sector for a period of three years.

Last month, French multinational electric utility company Engie announced it had secured R9.2 billion in loans for a 100MW solar thermal power project in SA. The company has signed a 20-year power purchase agreement with Eskom for construction of the Kathu Solar Project in the Northern Cape.

In March, Zuma was in Saudi Arabia, where SA was looking for more investments in renewable energy from the Middle East country.

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