UK-based Investec Bank has approved ZAR8bn ($813m) in debt funding for renewable energy projects in South Africa, a move that backs the nation's plans to add wind and solar power.
The funding is expected to be utilized in the financing of renewable projects, under the country’s third renewables bidding round.
Investec Bank noted that the second round had received bids from Electricite de France, Tata Power and Acciona, reports the bloomberg.com.
South Africa is planning to add 3,725MW of renewable-energy capacity by the end of 2016 with five tenders, in order to lower its dependence on coal for power. This move is expected to help state utility Eskom to meet the demand for clean electricity.
To date, Investec has taken part in around ZAR20bn ($2.04bn) of clean energy project financing ventures in the country.
In addition, the bank is looking forward to invest in projects across Ghana, Kenya and Mozambique.