Financing energy projects in Africa: “the traditional business model needs to change”
She explains that Africa GreenCo has an innovative business model “where it will function as an intermediary buyer and seller of power from IPPs and in this role will aggregate financial and supply risks in a portfolio approach by, amongst others, using local and regional markets to transparently diversify its risks.
Municipalities part of ESI
With regards to the role of municipalities, Ms Herbst, who is a former Eskom employee and 30-year veteran of the energy industry, says: “the municipalities are as much a part of the ESI as Eskom and as a matter of fact, in most large metros they add a margin in excess of 100% to Eskom’s tariff e.g. Eskom charges the municipalities approximately ZAR 1 / Wh and they in turn charge ZAR 2+ / kWh to their customers. This is exorbitant and to make matters worse the charges associated with pre-paid exceed those of post-paid. Surely pre-paid customers are a better credit quality than those that are being billed in arrears. The question to be raised here is who is benefitting from pre-paid meters, if it is the private sector, is their remuneration commensurate with their risk?
She adds: “what is clear though is that there is a myriad of players lying in wait to capitalise on the gap that has been created by the unfolding Eskom financial and reliability challenge. Can we as a country honestly say that the planning and pricing impact for this has been fully comprehended?
Ms Herbst will moderate a conference session on 'Financing renewable energy projects' at the upcoming African Utility Week and POWERGEN Africa in Cape Town from 14-16 May.
Educating investors on risk
“We are seeing greater interest from international investors than we have in the past, says Romain Py, Investment Director – Head of Transactions, African Infrastructure Investment Managers Pty Ltd (AIIM). “It is, however, important to note that the African private equity industry is still at an early stage of development relative to the traditional markets. As a result, the key focus for the industry needs to be on educating investors, notably on how to manage risks, and the large gap between perceived risks and actual residual risks for deals.
AIIM is a shareholder in the Albatros Energy Mali project which won Project of the Year at the African Utility Week Industry Awards last year. Albatros Energy Mali, an HFO thermal power station, is Mali’s first independent power producer (IPP) project.
Py adds: “There is also a need to educate governments on the requirements for increased private sector participation and consistency of policies and regulation. Reforms have been enacted in some countries in order to encourage Africa-based institutional investors to allocate capital to the asset class. However, more remains to be done to fully harness private equity’s potential to contribute to Africa’s socio-economic development.
This year’s African Utility Week and POWERGEN Africa dedicates a full three-day conference track to investment and finance in the energy sector. AIIM’s Romain Py is part of a panel discussion on: 'What impact will the financial and investment landscape for 2019 have on Africa’s power infrastructure?'
Mini grids, deregulation
“Deregulation would open a market for people to produce power and sell power and that would revolutionise the energy landscape in South Africa. Technically it wouldn’t be a difficult or complex thing to do; there are plenty of precedents around the world where it has worked really well – this is according to says Dr Sam Duby, Africa Director for TFE Energy and mini grid expert.
He continues: “creating a market for independently produced energy would also very quickly incentivise and unlock investment into the space. As more projects were built and generation capacity added, you would also very quickly get more system resilience. Blackouts really could be a thing of the past.
Dr Duby will address the conference on the latest developments in the African micro grid industry.
The 19th edition of this leading conference and exhibition is expected to attract more than 10 000 energy and water professionals this year.
Dates for African Utility Week and POWERGEN Africa:
Conference and expo: 14-16 May 2019
Site visits: 17 May 2019
Location: CTICC, Cape Town, South Africa
African Utility Week and POWERGEN Africa is the flagship energy event organised by Spintelligent, a multi-award-winning Cape Town-based exhibition and conference producer across the continent in the energy, infrastructure, mining and agriculture sectors. ESI Africa is the longstanding host publication of the event. Other well-known events by Spintelligent include Future Energy East Africa, Future Energy Nigeria, the Utility CEO Forums, Agritech Expo Zambia, Nigeria Mining Week and DRC Mining Week. Spintelligent is part of the UK-based Clarion Events Group and African Utility Week and POWERGEN Africa form part of Clarion Energy, which runs over 40 events that cover the oil, gas, power and energy sectors, making it one of Clarion Events’ largest portfolios.
Senior communications manager: Annemarie Roodbol
Telephone: +27 21 700 3558
Mobile: +27 82 562 7844
Postal address: PO Box 321, Steenberg, 7947, South Africa
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Financing energy projects in Africa: “the traditional business model needs to change” here
News-ID: 1719563 • Views: 943
More Releases from African Utility Week & POWERGEN Africa
World Water Day on 22 March: “Leaving no one behind”
A Cape Town bottling plant has managed to reduce its waste water by over 60%, saving more than 90 million litres of municipal water since January 2017. The Epping-based The Beverage Company produces over 1.5 million bottles of carbonated soft drinks per week and uses on average 30 000 litres of water per hour. According to the plant manager David Putterill, last year’s looming Day Zero for water supply in Cape
African Utility Week and POWERGEN Africa announces media partnership with Africa …
The organisers of African Utility Week and POWERGEN Africa, have announced that they have entered into a media partnership with African News Agency (ANA), a continent-wide multimedia content dissemination platform in the run-up to the event that is taking place from 14-16 May in Cape Town. ANA will also have a presence on the expo floor. The South African Minister of Energy, Honourable Jeff Radebe, is heading up a stellar
N1 City mall shows exciting potential of 3-in-1 waste-to-power technology in Cap …
About a third of the food produced in South Africa gets wasted and 90% of this waste lands up in landfills. Growthpoint Properties have embarked on an exciting partnership with the Dutch green technology provider Waste Transformers by installing an on-site, anaerobic digester at its N1 City Mall property in Cape Town which uses organic waste to produce green electricity, hot water and fertiliser. “Landfills produce methane gas which is worse
African Utility Week and POWERGEN Africa announces media partnership with CNN
The organisers of African Utility Week and POWERGEN Africa, have announced that they have entered into a media partnership with the global news organisation and broadcaster CNN in the run-up to the event that is taking place from 14-16 May in Cape Town. The South African Minister of Energy, Honourable Jeff Radebe, is heading up a stellar line up of expert speakers and will once again deliver the opening ministerial
More Releases for Cape
Scaffolding and Formwork Manufacturer in Cape Town
South End Scaffolding is a reputed name, best known as the trusted manufacturer of formwork and scaffolding in the Western Cape. The company offers a wide range of accessories and products, which provide complete solutions for different types of scaffolding requirements. The company stocks a wide range of products in its workshop as well as storehouse. South End Scaffolding has lately started exporting products to different countries which include Europe
Cape Gas Ensuring Safe LPG Installations
The expertise of Cape Gas lies in the “Liquid Petroleum Gas” Industry (LPG) and the company performs installations and repairs. Cape Gas is a registered member of LPGSASA or Liquid Petroleum Gas Safety Association of Southern Africa. Service areas of Cape Gas include: Domestic Installations: The staff of Cape Gas does Basic Economy installation that comes with a Gas Hob connection as well as single 9 kg cylinder in a cupboard system.
Cape Gas: Solving all LPG Requirements
Very few companies provide a wholesome solution to their consumers, be it domestic, commercial or industrial gas requirements. Cape Gas is one such company that proves to be a one-stop solution to any kind of requirement regarding liquefied petroleum gas (LPG). They are registered members of “Liquid Petroleum Gas Safety Association of South Africa (LPGSASA) and proudly employed members titled “Licensed Gas Practitioners” who hold South African Qualification and Certification
From the Cape to the Consumer
RHIEM Group is the fulfillment service provider for online specialist RED SIMON, shipping South African wines to countries all over Europe. Voerde, 03rd December 2012 – RED SIMON is the e-commerce specialist for high-quality wines from South Africa. The name RED SIMON derives from Simon van der Stel, the first Governor of South Africa, who founded the town of Stellenbosch and laid the cornerstone for the South African wine world. South
Things to Do While CAPE TOWN Vacation
Although South Africa has many great vacation destinations within its boundaries, but this one is certainly class-apart. Reason? It lets you experience luxury even on a 'within-budget trip'. The city and its sheer natural beauty can be likened to an elegant necklace adorning a woman's neck. With a unique vibrancy, dynamism and flair, it captivates in the most discerning tourist. This is probably why you'll never have problems finding a cheap
A Miracle Arrives - In Cape Cod: Mahendra Kumar Trivedi to Hold Wellness Retreat …
Cape Cod, MA (September 24, 2010) - Over the weekend of October 1 – 3, 2010, Mahendra Kumar Trivedi, founder of the nonprofit Trivedi Foundation, will return to the Cape Cod area to conduct an all-day retreat and to present some of the remarkable research done on his ability to profoundly affect matter simply through the transmission of mental energy. The phenomenal results of this unique ability – validated by