The Green Energy Efficiency Fund provides funding to companies which operate in the private sector who plan to implement a financially vaible Energy Efficiency Project which provides significant energy and/or emission saving or offset grid-connected electricity through self-use Renewealbe Energy. To apply complete and submit the GEEF application form available on the website and the IDC Regional offices accompanied by and executive summary providing the project background information and reason for funding.
Competitiveness through energy savingsEnergy Efficiency (EE) and Renewable Energy (RE) initiatives are vital to maintain the energy supply and demand balance within South Africa. Energy efficiency must be a strategic priority for companies as South Africa moves to higher, cost-reflective electricity pricing.
The Industrial Development Corporation (IDC) and the German Development Bank (KfW) have partnered to make a R500-million facility available for energy-efficiency and self-use renewable energy projects called the Green Energy Efficiency Fund.
The Green Energy Efficiency Fund supports the IDC’s alignment to the Industrial Policy Action Plan (IPAP2) and the New Growth Path with specific focus on growing the Green Economy.
Green Energy Efficiency Fund objectives
- Improved energy efficiency through reduced energy consumption, facilitating South Africa’s transition towards a low-carbon economy
- Long-term enterprise competitiveness and job creation through energy savings
- Support of self-use renewable energy technologies in South Africa
- Continued contribution to global climate protection, while supporting South Africa’s economic development and growth
Who qualifies for funding
» Implement a financially viable Energy Efficiency Project that provides significant energy and/or emissions savings
» Offset grid-connected electricity through self-use Renewable Energy
- Projects that are eligible under the Eskom IDM programme may be eligible for financing; the Green Energy Efficiency Fund provides an option for bridging finance to address the funding gap between the actual investment and the process required to obtain Eskom incentives/rebates
- Priority will be given to companies that have less than or equal to:
» 200 employees
» R51-million turnover
» R55-million assets
- Priority will be given to projects that have a high local content where there is local manufacture of a particular technology in South Africa
- Replicable and/or bundled industrial Energy Efficiency projects will be preferred
- Projects for non-SMEs or low local content may also be considered if they provide significant energy and emissions reductions
- This scheme is only available to businesses operating or expanding in South Africa
How does the Green Energy Efficiency Fund work? The funding can be used for equipment and technologies that:
- Use less energy to provide the same amount of useful work such as high-efficiency modernised boilers, compressors or insulation materials
- Make use of renewable sources rather than fossil fuels
- Perform multiple functions in one pass rather than separate passes or that benefit from variable controls
- Produce a higher quantity of products with less defects/ wastage and that ultimately results in lower energy use per unit of useful products produce
Business support
The IDC has access to international and local technical experts who will support eligible enterprises at no cost by:
- Performing energy assessments and audits to propose sustainable energy solutions and support the preparation of investment project proposals
- Calculating the economic and financial benefits of the proposed investment
- Supporting the selection of eligible equipment and enhanced performance technologies
How to apply Complete and submit the Green Energy Efficiency Fund application form, available on the website, accompanied by an executive summary providing project background information and reason for funding.
Eligible applicants will be requested to submit a detailed business plan to the IDC, accompanied by a financial model and cash flow statements historic, present and projected. These will serve as input to the due diligence and credit approval process.
Please refer to our website www.idc.co.za for a comprehensive business plan guide and further information.
Terms & conditions
- Loans from a minimum of R1m to a maximum of R50m are available at prime less 2%; for higher amounts, standard conditions apply
- The term is up to 15 years, depending on the payback period of the investment
- Standard IDC fees apply, including a raising fee of 1% and a commitment fee of 0.5% per annum
- All IDC credit policies and procedures will apply
Source:
http://idc.co.za/access/images/download-files/brochures/GEEF%20brochure.pdf 
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