Development finance institution the Development Bank of Southern Africa (DBSA) is inviting all private sector entities and energy developers to submit proposals in response to South Africa’s Embedded Generation Investment Programme (EGIP).

The EGIP seeks to provide first loss facilities and broad-based black economic empowerment funding to support the implementation of embedded generation renewable energy projects in the country.

A facility of about $200-million has been secured to implement solar photovoltaic and wind renewable energy projects in South Africa.

“[The] EGIP will crowd in funding from various funders to kick-start a new market for embedded generation in South Africa,” says DBSA project finance head Mpho Mokwele.

The call for proposals follows the recent announcement that embedded energy generation projects of up to 100 MW will be exempted from applying for energy generation licences. The projects will, however, still need to be registered with the National Energy Regulator of South Africa.

The projects under the EGIP will be implemented by private sector entities in their capacity as independent power producers or off-takers and local municipalities acting primarily as off-takers.

The underlying power purchase agreements under the EGIP are not expected to be underpinned by government guarantees.

Interested parties have until September 30 to submit proposals online.

Applications will be assessed through a competitive process, specifically targeting projects that are in advanced stages of development.