Solar projects in South Africa have gotten a $2.2 billion boost.
Johannesburg-based Standard Bank Group and the Industrial and Commercial Bank of China have signed an agreement to jointly fund renewable energy projects in South Africa.
They will provide debt financing to projects chosen as preferred bidders by South Africa's Renewable Energy Independent Power Producer Program (REIPPP).
10 solar projects are expected to benefit in these first and second phases of the program, which runs through 2030.
The deal will open up opportunities for Chinese renewable energy suppliers to build projects in South Africa. Another goal is to facilitate the entry of investors into South Africa, says Commercial Bank of China.Ã‚Â
JinkoSolar got an order for 100 megawatts of solar panels to supply two big projects under REIPPP.
Commercial bank of China is the world's largest bank and holds a 20% equity stake in Standard Bank - its largest shareholder.
Standard Bank says that as more investors become interested, liquidity could become an issue, making China's bank strategically important to the funding.
South Africa's Renewable Energy Independent Power Producer Program has a goal of installing 1.45 GW of solar PV in the country by the end of 2014, with 8.2 GW in capacity targeted by 2030.