Publications
Partners
Cape Town - This week saw the inauguration of two solar power projects, De Aar Solar Power and Droogfontein Solar Power.
Constructed at a combined cost of R3bn the plants are contributing 100 megawatts into Eskom’s power grid as part of government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This programme has attracted investments of over R120bn to date, much of which is direct foreign investment.
“Considering that South Africa has been rated as the 12th most attractive global investment destination for renewable energy, it is understandable that foreign investors are eager to help satisfy the country’s power needs, particularly in the renewable sector,” said Mark Pickering, managing director of Globeleq South Africa, the lead investor in the two plants.
Renewable-energy projects are also being developed elsewhere in Africa, such as in Namibia and Kenya, while policymakers regard the South African REIPPPP as a benchmark.
"This is an exciting opportunity for the continent with its abundance of renewable-energy resources and need for electricity,” said Pickering.
“What made South Africa particularly attractive to Globeleq as a foreign investor, was the well managed nature of the REIPPPP process, which has been lauded around the world."
The programme has benefitted from government’s explicit support, as well as the use of a transparent selection process implemented by some of the best technical, legal and project finance advisors in the world, in his view.
Speaking at an industry event in Pretoria last month, deputy minister of Energy, Barbara Thomson said to date, the programme has attracted over R150bn in foreign direct investment with about 7 500 jobs having been created during the construction phase of Windows 1 and 2.
Government has had multiple objectives for the programme, including the localisation of component manufacturing, the creation of jobs, skills-transfer and socio economic development.
“Strong Treasury support, which effectively guarantees Eskom’s payment obligations, gives lenders and investors the necessary confidence to invest,” said Pickering.
“Furthermore, the competitive bid process helps ensure that the resulting power supply is cost-competitive, affordable and sustainable.”
Constructed at a combined cost of R3bn the plants are contributing 100 megawatts into Eskom’s power grid as part of government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This programme has attracted investments of over R120bn to date, much of which is direct foreign investment.
“Considering that South Africa has been rated as the 12th most attractive global investment destination for renewable energy, it is understandable that foreign investors are eager to help satisfy the country’s power needs, particularly in the renewable sector,” said Mark Pickering, managing director of Globeleq South Africa, the lead investor in the two plants.
Renewable-energy projects are also being developed elsewhere in Africa, such as in Namibia and Kenya, while policymakers regard the South African REIPPPP as a benchmark.
"This is an exciting opportunity for the continent with its abundance of renewable-energy resources and need for electricity,” said Pickering.
“What made South Africa particularly attractive to Globeleq as a foreign investor, was the well managed nature of the REIPPPP process, which has been lauded around the world."
The programme has benefitted from government’s explicit support, as well as the use of a transparent selection process implemented by some of the best technical, legal and project finance advisors in the world, in his view.
Speaking at an industry event in Pretoria last month, deputy minister of Energy, Barbara Thomson said to date, the programme has attracted over R150bn in foreign direct investment with about 7 500 jobs having been created during the construction phase of Windows 1 and 2.
Government has had multiple objectives for the programme, including the localisation of component manufacturing, the creation of jobs, skills-transfer and socio economic development.
“Strong Treasury support, which effectively guarantees Eskom’s payment obligations, gives lenders and investors the necessary confidence to invest,” said Pickering.
“Furthermore, the competitive bid process helps ensure that the resulting power supply is cost-competitive, affordable and sustainable.”
