Local governments are looking to develop renewable energy projects, commonly referred to as embedded generation (EG), to achieve city-level goals. These projects can assist in:
- Reaching climate change targets,
- Provide a cost-effective electricity supply,
- Reduce power outages, and operational loses
- Stimulate local job creation and industry development
However, many cities struggle with developing and funding these projects for a number of reasons. This toolkit helps address the capacity gap for cities in South Africa to develop embedded generation projects and applying for funding. Although relevant to the South African context, key themes are relevant to cities across Africa and the globe.
About Alternative Financing for Municipal Embedded Generation (AFMEG)
This UK PACT (Partnering for Accelerated Climate Transitions) programme is funded by the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) through the UK’s International Climate Finance.
ICLEI Africa was appointed to manage the delivery of this 1-year project, which is linked to the DBSA’s Embedded Generation Investment Programme (EGIP). AFMEG was delivered with consortium partners Rebel Group and 3E.
The overall aim of the UKPACT project was to address the resource and capacity gap of intermediary cities in South Africa applying for embedded generation funding, notably from the EGIP. The project assisted four intermediary cities in applying to the EGIP, thereby refining technical and capacity resources that can assist future municipalities to apply for funding. These municipalities are:
- King Sabata Dalindyebo Municipality
- Matzikama Local Municipality
- Walter Sisulu Local Municipality
- Ray Nkonyeni Municipality
We appreciate the valuable contributions key stakeholders made to the AFMEG project.