Municipal Embedded Generation in South African Municipalities

Local governments in South Africa are looking to develop embedded energy generation projects (solar and wind power technology) to achieve municipal level goals. These projects can assist municipalities to reach climate change targets, provide affordable electricity, reduce load shedding and possibly stimulate local job creation – all desperately needed in the country.

Recent policy and regulatory changes now allow certain municipalities to install these projects, however, accessing finance for these initiatives remains a challenge. The Development Bank of Southern Africa (DBSA), in partnership with the Green Climate Fund (GCF), have set up a ~ R4bn Embedded Generation Investment Programme (EGIP) to stimulate growth of embedded generation initiatives in the country. Yet, small and intermediary municipalities struggle to participate in the investment programme, due to lack of capacity and resources to meet the application requirements.

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Abstract based on source.