GuarantCo and British International Investment (BII) are driving South Africa’s renewable energy transition. Their $100 million investment aims to unlock $500 million in new renewable energy projects.
This groundbreaking deal, in partnership with Etana Energy, supports the largest energy wheeling framework in South Africa. It will boost clean energy capacity and provide businesses with affordable, green electricity.
Supporting South Africa’s Green Transition
GuarantCo and BII are providing $50 million each as part of a $100 million guarantee facility. This financing will enable independent power producers (IPPs) to develop new projects with greater revenue certainty.
The initiative will deliver an additional 500 MW of renewable energy to the grid over the next few years, replacing fossil fuels with cleaner alternatives. It aligns with South Africa’s Just Energy Transition Partnership (JETP) goals, aiming to:
- Reduce CO2 emissions by 1.2 million tonnes annually.
- Create jobs in the renewable energy sector.
How Etana Energy Leads the Way
Etana Energy, a South African energy trading company, plays a central role in this initiative. Its innovative business model aggregates power from private renewable energy generators and distributes it to commercial customers.
By “wheeling” electricity through the national transmission network, Etana bridges the gap between private producers and businesses needing affordable, low-carbon power.
Evan Rice, CEO of Etana Energy, explained:
“This financing enables us to unlock the capital needed to build new electricity generation capacity. Businesses need low-carbon, cost-effective energy to stay competitive.”
A Blueprint for Climate Finance
The GuarantCo-BII partnership demonstrates how private capital can drive large-scale renewable energy projects.
Iain Macaulay, Director at BII, described the deal as a template for South Africa’s green energy future:
“This innovative financing model unlocks private investment and accelerates the country’s renewable energy potential.”
Surabhi Mathur Visser, Deputy CEO at GuarantCo, emphasized:
“We are proud to support South Africa’s green transition. This framework proves that scalable solutions can transform lower-income communities.”
Advancing the Just Energy Transition
This project is part of the JETP program, which is supported by several governments, including the UK. It highlights a shared commitment to reducing carbon emissions and providing businesses with clean, reliable energy.
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