Connect with us

Africa

Private energy grows as green energy attracts financing

Published

on

  Private energy is booming This was the message from the CEO of Rand Merchant Bank RMB Emrie Brown at the Green Energy Africa Summit GEAS https GreenEnergyAfricaSummit com which took place at the City International Conference Center of the Cape from October 4 to 5 Brown was speaking during a successful first day of the Summit which attracted hundreds of local and international delegates Brown identified a growing trend for metropolitan areas and private companies to generate their own power or source it from third parties as power opportunities expanded beyond the traditional state owned company Eskom The good news is that financial institutions like RMB are seeing value in financing independent energy initiatives International investors are also attracted to Africa s renewable energy opportunities Brown said South Africa s current power deficit was estimated at around 6 000 MW but ballooned to around 15 000 MW if Eskom s breakdowns and its plans to retire power plants at the end of their lives were taken into account Useful Solving such an energy crisis would require significant investment from both the public and private sectors Brown said total investment in the power sector through 2030 was estimated at 1 2 trillion rand 67 billion Brown said RMB estimated that 7 5 billion to 10 billion would be needed over the next three years just to fund the government s renewable energy program Brown said the bank believed such programs were highly bankable and would require 80 85 debt He said the bank was encouraged by increased activity in the sector under the Renewable Energy IPP Procurement Program REIPPPP the risk mitigation IPP program and initiatives by municipalities such as Cape Town eThekweni and Johannesburg to establish their own power generation programs We fully support these initiatives and believe they are a critical part of our energy transition said Brown Private power is on the rise Private companies now generate their own energy or obtain it from third parties He said it was critical to continue to make it easier to register and license generation capacity and to get clarity on transporting power through South Africa s grid Brown said that based on deal flow RMB estimated that the financing needed for private power projects over the next two to three years would be at least 2 8 billion Delivering a keynote address at GEAS the UK Trade Commissioner for Africa John Humphreys agreed that renewable energy represented a significant investment opportunity for international and domestic companies Renewables are a good investment he said Renewables are lowering the total cost of energy and making businesses more efficient making them an increasingly attractive investment Humphrey emphasized that the UK is committed to investing in Africa s green energy potential With a growing population and an economy valued at 2 4 trillion there are huge opportunities in Africa s emerging sectors such as technology clean energy and sustainable infrastructure Humphreys said We are excited to grow the UK Africa relationship in these industries Brown said only a fraction of Africa s energy potential is currently being exploited in areas such as hydropower solar biomass wind and geothermal power National and international capital must be mobilized for innovative financing in Africa s energy sector with a focus on renewable energy Electrification efforts must be open to investment and innovations from the private sector such as solar power and battery storage which have had a tremendous impact in enabling access to millions of poor and underserved households Brown said the challenge of Africa s energy transition was two fold managing risks to vulnerable communities directly affected by climate change while also supporting people whose lives are inextricably linked to the fossil fuel industry and for whom this transition represents a direct impact threat to livelihoods The biggest challenge is delivering the vision of a just transition a more socially inclusive society that has managed the social risk of change and sees the economic opportunity that change brings he said GEAS Vice President for Energy Paul Sinclair said feedback from business leaders supported the Summit s mission to improve access to sustainable energy in a way that made business sense We completely agree that there are great opportunities in low carbon energy he said This event is about enabling investment in new energy projects providing access to energy and shaping the future of Africa
Private energy grows as green energy attracts financing

blogger outreach daniel wellington naijanewshausa

Rand Merchant Bank

Private energy is booming.

naijanewshausa

This was the message from the CEO of Rand Merchant Bank (RMB), Emrie Brown, at the Green Energy Africa Summit (GEAS) (https://GreenEnergyAfricaSummit.com/), which took place at the City International Conference Center of the Cape from October 4 to 5.

naijanewshausa

Brown was speaking during a successful first day of the Summit, which attracted hundreds of local and international delegates.

Brown identified a growing trend for metropolitan areas and private companies to generate their own power or source it from third parties, as power opportunities expanded beyond the traditional state-owned company, Eskom.

The good news is that financial institutions like RMB are seeing value in financing independent energy initiatives.

International investors are also attracted to Africa’s renewable energy opportunities.

Brown said South Africa‘s current power deficit was estimated at around 6,000 MW, but ballooned to around 15,000 MW if Eskom’s breakdowns and its plans to retire power plants at the end of their lives were taken into account.

Useful.

Solving such an energy crisis would require significant investment, from both the public and private sectors.

Brown said total investment in the power sector through 2030 was estimated at 1.2 trillion rand ($67 billion).

Brown said RMB estimated that $7.5 billion to $10 billion would be needed over the next three years just to fund the government’s renewable energy program.

Brown said the bank believed such programs were highly bankable and would require 80-85% debt.

He said the bank was encouraged by increased activity in the sector under the Renewable Energy IPP Procurement Program (REIPPPP), the risk mitigation IPP program and initiatives by municipalities such as Cape Town, eThekweni and Johannesburg to establish their own power generation programs.

“We fully support these initiatives and believe they are a critical part of our energy transition,” said Brown.

“Private power is on the rise!

Private companies now generate their own energy or obtain it from third parties.

He said it was critical to continue to make it easier to register and license generation capacity, and to get clarity on transporting power through South Africa’s grid.

Brown said that based on deal flow, RMB estimated that the financing needed for private power projects over the next two to three years would be at least $2.8 billion.

Delivering a keynote address at GEAS, the UK Trade Commissioner for Africa, John Humphreys, agreed that renewable energy represented a significant investment opportunity for international and domestic companies.

“Renewables are a good investment,” he said.

“Renewables are lowering the total cost of energy and making businesses more efficient, making them an increasingly attractive investment.”

Humphrey emphasized that the UK is committed to investing in Africa’s green energy potential.

“With a growing population and an economy valued at $2.4 trillion, there are huge opportunities in Africa’s emerging sectors such as technology, clean energy and sustainable infrastructure,” Humphreys said.

“We are excited to grow the UK-Africa relationship in these industries.”

Brown said only a fraction of Africa’s energy potential is currently being exploited, in areas such as hydropower, solar, biomass, wind and geothermal power.

“National and international capital must be mobilized for innovative financing in Africa’s energy sector with a focus on renewable energy.

Electrification efforts must be open to investment and innovations from the private sector, such as solar power and battery storage, which have had a tremendous impact in enabling access to millions of poor and underserved households.” Brown said the challenge of Africa’s energy transition was two-fold: managing risks to vulnerable communities directly affected by climate change, while also supporting people whose lives are inextricably linked to the fossil fuel industry and for whom this transition represents a direct impact.

threat to livelihoods.

“The biggest challenge is delivering the vision of a just transition: a more socially inclusive society, that has managed the social risk of change and sees the economic opportunity that change brings,” he said.

GEAS Vice President for Energy Paul Sinclair said feedback from business leaders supported the Summit’s mission to improve access to sustainable energy in a way that made business sense.

“We completely agree that there are great opportunities in low-carbon energy,” he said.

“This event is about enabling investment in new energy projects, providing access to energy and shaping the future of Africa.”

bet9ja sign in english and hausa ur shortner facebook video downloader