• BEE winners and losers

    Creating real change and real jobs requires a new ideology, says Gerhard Papenfus.

  • Governance matters

    Addressing risk well and timeously can be a source of growth, says Ian Mann.

  • Road to riches

    Taxpayers keep funding structures with big plans but who knows what efficacy, says Mandi Smallhorne.

See More

Standard to invest R10bn in green power

Jun 09 2011 17:07 Reuters

Company Data


Last traded 168
Change 0
% Change 0
Cumulative volume 1392850
Market cap 0

Last Updated: 31-03-2015 at 03:03. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Green energy use to surge: UN

Standard voted best in 4 countries

Green fund may mean more taxes for SA

Standard Bank profit down

Nuclear still part of energy mix: Peters

Manuel to co-chair global green fund

Cape Town - Standard Bank Group [JSE:SBK], Africa’s largest lender by assets, plans to commit more than R10bn to green energy projects in South Africa, its head of power finance said on Thursday.

Alastair Campbell said there was significant appetite from both local and foreign power producers for investing in South Africa’s renewable energy sector, despite the government’s delays in finalising related subsidies.
“The bank is committed and has appetite to fund as many megawatts as is possible ... upwards of R10bn for South Africa alone,” Campbell told Reuters in an interview, adding that it would go mostly to wind and solar projects.
South Africa, which relies on coal for most of its electricity supply, is eager to diversify its energy mix and reduce its heavy carbon footprint.
Independent power producers (IPPs) are eagerly waiting for the energy regulator to finalise proposed renewable energy subsidies, which are meant to stimulate large-scale investments. The regulator is due to announce the final figures next week after it said in March that the numbers initially proposed would be cut after it revised estimates of debt and inflation.
South Africa, which is to host global climate change talks later this year, aims to procure about 1 000 MW from private producers by the end of this year, but the target may be at risk given delays in finalising the tariffs.
The country wants to source at least 3 825 MW of renewable energy from IPPs by 2016.
South Africa is struggling to meet fast-rising demand for power, and private producers are seen as vital to add much-needed megawatts and reduce pressure on power utility Eskom, which is trying to find the money it needs to build new plants.
South Africa’s national grid nearly collapsed in early 2008, forcing mines and smelters to shut for days and costing billions of dollars in lost output.

Eskom has said it expects power supply to remain tight over the next few years until its new power plants come on stream.

Campbell said the bank also planned to invest $50m to $75m in Kenya’s 310 MW Lake Turkana wind project, and would put money into Mozambique’s proposed $3bn 1500 MW Mphanda Nkuwa hydro-power project.
“The Mphanda Nkuwa funding process will start imminently and we are hoping to be the lead arranger, aiming for financial close by the end of 2012,” Campbell said, declining to give more details on the amounts.

The hydropower project is being jointly developed by a consortium consisting of Brazilian conglomerate Camargo Correa, the Insitec Group and Mozambique’s EDM.

Standard Bank is 20% owned by Industrial and Commercial Bank of China.
standard bank  |  eskom  |  power generation  |  green energy



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote