South Africa has established an international partnership with four European countries and the European Investment Bank (EIB) to secure long-term funding for the development of the country’s renewable energy industry.

Government representatives from the UK, Norway, Germany and Denmark, as well as development finance institution the EIB signed a declaration of intent on the South African Renewables Initiative (SARi), which was officially launched on the sidelines of the COP 17 climate talks in Durban.

SARi aims to mobilise domestic and international funding, and sector expertise to support South Africa to scale up its renewable energy industry. It was developed as part of the Industrial Policy Action Plan (Ipap) and approved by Cabinet as one of the three flagship Ipap projects.

South Africa plans to add 17 800 MW of renewable energy capacity by 2030.

Energy Minister Dipuo Peters said such a partnership would enable wider international collaboration between the government of South Africa, other governments and regional and international public bodies in catalysing renewable and industrial development.

The declaration of intent, referred to as the SARi international partnership, aims to develop the basis for arrangements to provide financial instruments and resources to support an ambitious development of renewable energy in the country, subject to the demonstrations of value for money and results.

Further, it seeks to provide technical assistance and sharing of experience from partners as part of industrial development strategies and financing solutions for a low-carbon economy.

These, and other objectives outlined in the declaration of intent, would also be included in a memorandum of understanding in future.

Peters added that the launch of SARi and the international partnership indicated that the country was confident about the potential of its renewable energy sector, and that South Africa was “not paying lip service, but serious [was] about its renewable business”.

Trade and Industry Minister Rob Davies said the world was on a “cusp of industrialization” based on a green energy and technology.

“The launch of SARi and the international partnership ensures that South Africa and Africa are not just service providers as in the last wave of the information and communication technology industrialisation. This is the time for Africa to be renewable energy manufacturers and developers driving the “new wave of industrialisation”, Davies said.

Davies pointed out that in 2023 [peak year] about 37 000 jobs would be created through the SARi, while between 2012 to 2030, the average number of jobs a year created would be between 20 000 and 23 000.

Government representatives from the partnering countries indentified SARi as an important climate, energy and industry policy.

Norway Environment and International Minister Erik Solheim said South Africa could take the leadership in Africa to assist other countries in increasing access to energy.

British High Commissioner to South Africa Nicola Brewer believed that South Africa’s renewable energy targets were “ambitious” and that SARi represented the certainty needed by governments and investors to catalyse the billions of pounds needed for the development and take-off of renewable energy projects.

The launch of SARi comes as government announced the names of the first 28 renewable energy independent power producer preferred bidders on Wednesday, representing potential capacity of 1 415.52 MW.

The preferred bidders named included 18 solar photovoltaic projects, eight onshore wind projects and two concentrated solar power projects.