green energy

24 February 2025

Solarafrica Secures R1.8 Billion Solar Investment, Advancing Wheeling Adoption in South Africa

SolarAfrica (https://SolarAfrica.com/) is proud to take another major step forward in the development of its flagship utility-scale solar project, SunCentral, by successfully reaching financial close on the first 114 MW component of the project alongside funding partners Investec and RMB. The R1.8 billion investment into SunCentral marks the start of the project's rollout in South Africa.

SunCentral is a large-scale solar photovoltaic (PV) plant located between Hanover and De Aar in South Africa's Northern Cape province. The project will be developed in three phases.

Phase 1, consisting of 342 MW, will be delivered through a staged roll-out of three 114 MW facilities and will deliver renewable energy to a diverse range of off-takers by wheeling it through South Africa's power grid. Phase 2 and 3 will increase SunCentral's capacity to 1 GW.

Unlike similarly sized projects that offer wheeling on a one-to-one basis (with one generation plant supplying one off-taker), SolarAfrica's project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa.

SolarAfrica's Chief Investment Officer Charl Alheit, who spearheaded the financial close, explains: “Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors.”

He adds that the substantial size of SunCentral will unlock access to cheaper, greener power for even more businesses across the country. “We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers."

SolarAfrica is part of the greater Starsight Energy Africa Group. The success of SunCentral will act as a blueprint for similar (and possibly smaller) off-site generation projects in other key African markets in which the Starsight Energy Africa Group companies operate.

“The construction of SolarAfrica's SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa, says Paul van Zijl, Group CEO of Starsight Energy Africa Group. “We are excited to move this project forward and continue delivering long-term value to our customers,” he says.

SolarAfrica is backed by world-class investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners who both hold decades-long track records of bringing investment to support African innovation.

“Reaching Financial Close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica, says Thor Corry, Investment Director at AIIM.

“The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa's Just Energy Transition. With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial,” Corry concludes.

Distributed by APO Group on behalf of Starsight Energy.

About SolarAfrica:
Founded in 2011, SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. The holistic suite includes on-site solutions such as solar energy and battery storage together with virtual solutions like wheeling, trading and aggregation.

SolarAfrica partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction – building towards long-term sustainability.

The company has evolved into an ambitious team who are passionate about what they do and the core values they uphold. SolarAfrica has been named the continent's leading solar energy firm twice, scooping the Africa Solar Industry Association's African Solar Company of the Year award in 2021 and 2023.

About Starsight Energy:
Across the continent, Starsight Energy is redefining what it means for businesses to be energy efficient. Starsight Energy provides premier clean on-grid and off-grid energy services to commercial and industrial clients in Africa.

Serving the commercial and industrial, financial, residential, educational and agricultural sectors, Starsight Energy delivers tailored power and cooling solutions to meet client requirements while optimising consumption through energy-efficient appliances and environmentally friendly practices and recommendations.

From load analysis and modelling to demand management and customised solution design, Starsight Energy helps clients optimize energy efficiency and cost savings across the board.

About African Infrastructure Investment Managers (“AIIM”):
AIIM, a member of Old Mutual Alternative Investments* (“OMAI”), has been investing in the African infrastructure sector since 1999 with a track record extending across seven African infrastructure funds. AIIM's team of 40+ investment professionals are based out of five locally staffed offices across the continent in Cape Town, Johannesburg, Nairobi, Lagos and Abidjan providing direct on-the-ground coverage of our key markets.

AIIM is Africa's largest dedicated infrastructure private equity manager and currently manages an aggregate AUM of USD2.9 billion in assets across the power, renewable energy, digital infrastructure, mid-stream energy and transport sectors with operations in 19 African countries.

AIIM is a licensed FSP approved by the Financial Sector Conduct Authority in South Africa.

*Old Mutual Alternative Investments (OMAI) is a private alternative investment manager in Africa, with over USD7.6 billion (ZAR139.4 billion) under management in infrastructure, private equity, hybrid equity and impact funds. It is a member of Old Mutual Investment Group, the investment management arm of Old Mutual.

About Helios Investment Partners:
Established in 2004, Helios Investment Partners is the largest Africa-focused private investment firm, with a record that spans creating start-ups to providing expanding companies with growth capital and expertise. The firm has over $3.0 billion in assets under management and is led and managed by a predominantly African team based in London, Lagos, Nairobi and Paris, with the language skills and cultural affinity to engage with local entrepreneurs, managers, and intermediaries on the continent.

Helios leverages its local and global networks to create attractive proprietary investment opportunities, with an emphasis on building market leaders in core economic sectors and driving performance through a highly engaged approach to portfolio operations. The firm's unique combination of a deep knowledge of the African operating environment, a singular commitment to the region and a proven capability to manage complexity, is reflected in its diverse portfolio of growing, market-leading businesses, and its position as a partner of choice in Africa.

Helios is the second mainstream private equity firm globally, and the largest emerging markets focused private equity firm, to achieve B Corp certification. B Corp status recognizes the firm's longstanding commitment to sustainability and responsible business practices.

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21 February 2025

BMA facilitated smooth arrival of G20 Foreign Ministers

Location: News

BMA facilitated smooth arrival of G20 Foreign Ministers

The Border Management Authority (BMA) says the processing of dignitaries arriving for the G20 Foreign Ministers' meeting, currently underway in Johannesburg, was carried out smoothly.

“The G20 Ministers started arriving in the country from 19 February 2025 and will depart from 22 February 2025, using OR Tambo International Airport and Lanseria International Airport.

“Working together with law enforcement agencies, the BMA has ensured seamless processing of the Foreign Ministers in a safe environment upon arrival. To this effect, the BMA has augmented its capacity at these two airports and allocated dedicated Immigration counters for the delegates to ensure speedy processing of all travellers,” BMA Commissioner Masiapato said in a statement.

The two-day meeting which began on Thursday is taking place in Nasrec, Johannesburg.

South Africa assumed the G20 Presidency on 1 December 2024, which will culminate in a meeting of G20 Heads of State and Government later in November.

Various sectoral Ministerial meetings will be held throughout the year in the lead up to November.
G20 members include the world’s major economies.

The BMA is a Schedule 3A National Public Entity established in April 2023 with the mandate of facilitating legitimate movement of goods and persons.

Speaking at the opening of the G20 Foreign Ministers’ Meeting at Nasrec in Johannesburg, President Ramaphosa emphasised the significance of hosting the G20 Leaders’ Summit on African soil.

The Foreign Ministers' Meeting, hosted by the Minister of International Relations and Cooperation, Ronald Lamola, takes place under South Africa's G20 Presidency theme of 'Solidarity, Equality and Sustainability'.

“Africa is home to some of the world’s fastest-growing economies and faces unique challenges, such as the impact of climate change, development needs and the effects of global trade dynamics.

“The Summit's location underscores the need for African voices to be heard on critical global issues, like sustainable development, the digital economy and the shift toward green energy,” President Ramaphosa said in his address on Thursday. – SAnews.gov.za

Edwin
Fri, 02/21/2025 - 09:43
86 views

20 February 2025

Call for global solidarity at G20 Foreign Ministers’ Meeting

Location: News

Call for global solidarity at G20 Foreign Ministers’ Meeting

President Cyril Ramaphosa has urged global leaders to embrace inclusivity, cooperation and reform as South Africa steers the Presidency of the Group of 20 (G20) for the first time.

Speaking at the opening of the G20 Foreign Ministers’ Meeting at Nasrec in Johannesburg, President Ramaphosa emphasised the significance of hosting the G20 Leaders’ Summit on African soil.

The Foreign Ministers Meeting, hosted by the Minister of International Relations and Cooperation, Ronald Lamola, takes place under South Africa's G20 Presidency theme of 'Solidarity, Equality and Sustainability'.

“Africa is home to some of the world’s fastest-growing economies and faces unique challenges, such as the impact of climate change, development needs and the effects of global trade dynamics.

The President said this was a great opportunity to promote greater collaboration between African nations and the rest of the world.

He highlighted pressing global challenges, including geopolitical tensions, climate change, economic inequality and food insecurity, warning that the world’s fragile coexistence was under threat.

“These challenges are interconnected. They require responses that are inclusive and coordinated. Yet, there is a lack of consensus among major powers, including in the G20, on how to respond to these issues of global significance,” he said.

He called for greater consensus among major powers within the G20 to address these issues.

The President also highlighted that there are just five years to 2030, the deadline for achieving the Sustainable Development Goals.

He said the international community committed to this ambitious agenda to end poverty and hunger, to protect the planet, to achieve gender equality, universal education and health coverage, and to promote decent work and sustainable economic growth.

“Our commitment to achieve these targets we must not waver. The nations of the world look to the G20 for leadership on the most pressing issues confronting our world.

“Just as cooperation supported the progress of early humans, our modern-day challenges can only be resolved through collaboration, partnership and solidarity,” he said.

President Ramaphosa said this was why South Africa had placed solidarity, equality and sustainability at the centre of its G20 Presidency.

“We would like our G20 Presidency to be one in which all voices are heard and in which all views count. The G20 represents over two-thirds of the world’s population.

“Its decisions and policies must reflect the needs and aspirations of all who form part of the G20 family,” he said.

He also called on the G20 to seek to reflect the needs and aspirations of all people who call this planet home.

A call for UN and global financial system reforms

With the United Nations marking its 80th anniversary, President Ramaphosa reiterated South Africa’s call for reforming the UN Security Council, the multilateral trading system, and the international financial architecture to make them more representative and responsive to today’s realities.

“The UN must change accordingly. We continue to call for the UN Security Council, the multilateral trading system and the international financial architecture to be reformed to make them more representative, more agile and more responsive to today’s global realities.

“As the G20, it is critical that the principles of the UN Charter, multilateralism and international law remain at the centre of all our endeavors,” the President asserted.

President Ramaphosa also addressed ongoing global conflicts, including the wars in Ukraine, Sudan, the Sahel and Gaza.

He welcomed the recent ceasefire agreement between Israel and Hamas, calling it a crucial first step toward lasting peace and urging diplomatic solutions to global conflicts.

“As the G20, we must continue to advocate for diplomatic solutions. Our own experience as South Africa is that the peaceful resolution of conflict through inclusive dialogue is the foremost guarantor of sustainable, lasting peace,” he said.

Key priorities for South Africa’s G20 Presidency

Outlining South Africa’s vision for its G20 Presidency, President Ramaphosa identified four key priorities, which include strengthening disaster resilience and response, ensuring debt sustainability for low-income countries, mobilising climate finance for a just energy transition and harnessing critical minerals for sustainable development.

He emphasised the need for international financial institutions and the private sector to scale up post-disaster recovery efforts, particularly in vulnerable nations.

With many developing economies burdened by high borrowing costs, he called on G20 leaders to renew efforts in addressing debt sustainability, especially in Africa.

On the third priority, President Ramaphosa urged developed nations to fulfil their obligations in supporting developing economies’ green energy transitions, in line with global climate agreements.

Turning to the last priority, the President proposed an inclusive G20 framework on green industrialisation and investment to promote value addition and beneficiation of critical minerals. – SAnews.gov.za

DikelediM
Thu, 02/20/2025 - 16:19
258 views

12 February 2025

Minister George announces actions to grow SA’s green economy

Location: News

Minister George announces actions to grow SA’s green economy

The Minister of Forestry, Fisheries and the Environment, Dr Dion George, has announced key actions to accelerate South Africa’s green economy, create sustainable jobs, and to stimulate economic growth.

These actions focus on renewable energy, energy efficiency, and circular economy initiatives.

In a statement on Wednesday, the Minister said these actions will contribute to environmental targets while fostering economic opportunities.

The Department of Forestry, Fisheries and the Environment (DFFE) is prioritising renewable energy projects, including solar, wind, and hydropower.

It has streamlined environmental authorisation processes to speed up project approvals, including the exclusion of solar and battery facilities from environmental authorisation in low and medium environmental sensitivity areas.

Furthermore, 11 renewable energy zones and five transmission corridors for incentivised green energy projects have been identified.

“Efforts to incentivise renewable energy development include identifying strategic zones where the environmental review will take just 194 days, instead of the usual 300.

“These measures will stimulate job creation in installation, maintenance, and in other related sectors, specifically targeting underserved communities,” the department said.

The Minister emphasised the importance of improving energy efficiency across sectors.

“Through energy-saving programmes and technology incentives, we aim to reduce consumption and cut costs,” George said.

The DFFE is also investing in waste management to support the transition to a circular economy.

The circular economy refers to a model in which products are re-used and recycled, waste is reduced, and products are re-designed.

“Initiatives like the Recycling Enterprise Support Programme (RESP) and e-waste projects in Bushbuckridge and Nkomazi municipalities are providing economic opportunities for communities while addressing waste,” the department said.

Earlier this month, government launched two E-Waste Recycling pilot projects in Mpumalanga that will enable residents to bring their old and unused electronic waste, such as cell phones, computers, televisions, and other electrical appliances.

Another green economy initiative that the department is driving is the launch of a Green Hydrogen Guideline, which will be launched on 17 February 2025.

The guideline will help to streamline approvals for green hydrogen projects, which will support the country’s energy transition.

The Minister said that all of these initiatives are not only designed to preserve the environment but will also create much-needed jobs, especially in disadvantaged areas, while driving long-term economic growth.

“By focusing on the green economy, we’re not just protecting the environment, but creating a sustainable future with meaningful jobs,” he said. -SAnews.gov.za

nosihle
Wed, 02/12/2025 - 09:32

100 views

7 February 2025

SA powering on with AfCFTA to boost African trade

Location: News

SA powering on with AfCFTA to boost African trade

President Cyril Ramaphosa says government is working towards the full implementation of the African Continental Free Trade Area (AfCFTA), which will tear down the barriers to trade on the continent.

“As the most industrialised economy in Africa, we are positioning ourselves to be at the centre of this new and growing market,” President Ramaphosa said.

In his State of the Nation Address (SONA) delivered in Cape Town on Thursday, President Ramaphosa said government is harnessing the sun and the wind to make the country a leader in renewable energy and green manufacturing.

“With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process. We are making sustainable use of the rich abundance of the South African earth.

“By supporting our farmers, improving our logistics network and rural supply chains, and opening new export markets for products we can significantly expand our agricultural sector. We want South Africa to be leading in the commercial production of hemp and cannabis.

“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” the President said.

The agreement establishing the AfCFTA came into force on 30 May 2019.

The AfCFTA agreement will create the largest free trade area in the world measured by the number of countries participating.

The AfCFTA is the engine for African economic and regional integration. The agreement establishing the AfCFTA includes in its general objectives the creation of a liberalised market for goods and services, and laying the foundation for the establishment of a continental customs union at a later stage. – SAnews.gov.za

Edwin
Fri, 02/07/2025 - 09:50

48 views

6 February 2025

Government to ‘breathe new life’ into mining

Location: News

Government to 'breathe new life' into mining

President Cyril Ramaphosa has announced that government will pour efforts into re-energising the mining industry.

He said this when he delivered the State of the Nation Address at the Cape Town City Hall on Thursday.

According to the Minerals Council of South Africa, the mining industry contributed approximately 6.3% to South Africa’s nominal Gross Domestic Product (GDP) in 2023.

It also commands a large share of South Africa’s exports by value.

“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” the President said.

He added that the Department of Mineral and Petroleum Resources was implementing modern mining rights systems.

While that work is underway, the backlog in prospecting and mining applications was also being attended to, with at least 114 mining rights, 982 prospecting rights, and 385 mining permits and ancillaries processed and finalised.

“We are on track to implement a new, modern and transparent mining rights system this year, which will unlock investment in exploration and production.

“We will put in place an enabling policy and regulatory framework for critical minerals.

“By beneficiating these minerals here in South Africa, we can make use of the extraordinary wealth that lies beneath our soil for the benefit of our people,” President Ramaphosa said.

Renewable energy

Although mining remains a key pillar in the South African economy, President Ramaphosa emphasised that a new growth sector in renewable energy was emerging which South Africa was well positioned to leverage.

“To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy,” he said.

Furthermore, South Africa is abundant in the natural resources linked to renewable energy.

“We are harnessing the sun and the wind to make our country a leader in renewable energy and green manufacturing.

“With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process,” President Ramaphosa said. – SAnews.gov.za

NeoB
Thu, 02/06/2025 - 21:46

26 views

12 December 2024

Mashatile calls on Chinese-funded businesses to increase investments to create jobs in SA

Location: News

Mashatile calls on Chinese-funded businesses to increase investments to create jobs in SA

Deputy President Paul Mashatile has encouraged Chinese-funded enterprises in South Africa to increase their investments in crucial sectors of the economy, particularly the automotive industry and infrastructure development.

“Your participation and investment in our country is critical for creating jobs and promoting economic growth and development,” the Deputy President said on Wednesday.

The country’s second-in-command was speaking at the launch of the corporate social responsibility report of Chinese-funded enterprises in South Africa.

At the South Africa-China Economic Trade and Association (SACETA) event, Mashatile cknowledged the organisation’s substantial contributions to the country’s economic and social development.

SACETA was established in April 2011 and serves as a vital platform for fostering economic and trade collaboration between China and South Africa.

Mashatile told attendees that the 200 Chinese-funded enterprises locally serve as role models for businesses, demonstrating that profitability should be balanced with social good.

As the global landscape continues to evolve rapidly, he believes it is essential for nations to cultivate strong partnerships to thrive and navigate the challenges of the modern world.

“We should leverage our expertise to navigate towards a more sustainable path, guided by the principles of joint pursuit and a shared future. Our countries have complementary strengths and resources, making us ideal economic partners.”

The Deputy President described China as one of the world’s greatest economies, providing a massive market for South African goods and services.

“In return, South Africa provides rich resources, such as minerals, agricultural products, and skilled labour, to support China’s rising economy.”

Mashatile is of the view that improving trade connections between South Africa and China benefits both countries directly and has a positive ripple effect throughout the region.

“Increased trade creates jobs, stimulates economic growth, and improves living standards for the people of both countries.”

However, the Deputy President acknowledged that the trade structure has been imbalanced, noting that last year’s value of China’s imports far exceeded its exports.

According to Mashatile, total bilateral trade increased from R614 billion in 2022 to R692 billion in 2023, while China’s R146 billion deficits remained the highest among any of the country’s trading partners.

He announced that government intends to work with China in addressing the trade deficit and structure of bilateral trade by broadening its export basket, especially to export more value-added products.

“South Africa mostly exports minerals and agricultural products to China while importing mostly manufactured goods from China. At a time when African economies are becoming more integrated, China’s technological prowess may help Africa industrialise and export more than just raw materials.

“Instead of exporting raw agricultural items, South Africa may export processed foods that are more valuable.”

Mashatile stressed that China could lend a helping hand by streamlining import procedures and lowering regulatory hurdles, which could make China a larger market for local products, benefiting both South African producers and Chinese customers.

He said Chinese-funded enterprises must seize opportunities in emerging fields such as artificial intelligence, the digital economy and green energy.

Last year, Chinese businesses pledged to invest up to R15 billion at South Africa’s fifth Investment Conference.

“In that same year, we witnessed the signing of significant purchase agreements totalling US$2.2 billion with companies in both nations. Therefore, our positive trade relations continue to be crucial in combating unemployment, inequality, and poverty,” Mashatile said.

He said South Africa and China share a strong and longstanding relationship, and that the bond between the nations has deepened, revealing the potential for collaboration to promote inclusive and equitable growth.

The Deputy President also touched on President Cyril Ramaphosa’s recent State Visit to China and told attendees that both Heads of State committed to providing a stable, fair, and enabling business environment for companies.

He welcomed the report that highlights the contributions of Chinese-funded enterprises to environmental conservation, community development, education, and healthcare.

“As we move forward, let us reaffirm our commitment to expanding South African-Chinese trade and investment cooperation. Together, we can build a more successful and sustainable future for our countries.” – SAnews.gov.za

Gabisile
Wed, 12/11/2024 - 13:54

22 views

3 December 2024

Is Decarbonisation Possible for Africa?

Location: News

Starsight Energy
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Paul van Zijl, Group CEO at Starsight Energy (www.StarsightEnergy.com), believes it is. He maintains that we must apply a contextual lens and move away from all-or-nothing thinking, employing a holistic, phased and sustainable approach to the continent's energy mix.

It's fair to say that the global imperative to ‘decarbonise' – the shift from fossil fuels such as coal, natural gas or oil to carbon-free and renewable energy sources – has been more of a stumble than a sprint in Africa.

But as always, context is important. In Africa, other pressing socio-economic often – understandably – take priority, which then limits available funding; a lack of infrastructure hampers development; and, of course, vested interests slow progress. All of these factors have contributed to Africa's sluggish transition, for which it has been (often unfairly) criticised.

The cruel irony is that – even though Africa is far from the leading perpetrator behind the world's current carbon status (the continent is estimated to contribute less than 4% to global greenhouse gas emissions, making it one of the lowest emitters in the world) – it is one of the regions most vulnerable to the effects of climate change.

Africa's temperature increases surpass the global average, while multi-year droughts in some regions juxtaposed by extreme flooding in others have become the norm. Without targeted intervention, an estimated 118 million Africans living in extreme poverty will face increased exposure to droughts, floods, and extreme heat in the coming years, further straining poverty alleviation efforts and economic growth.

African countries are estimated to lose 2–5% of their gross domestic product (GDP) annually and allocate up to 9% of their budgets to respond to climate extremes, according to the World Meteorological Organization's (WMO) State of the Climate in Africa 2023 report. In Sub-Sahara Africa, adaptation costs are projected to reach USD 30–50 billion by 2030, or 2–3% of the region's GDP. Yet, Africa is estimated to only receive around 3% of global climate finance.

Africa is not the biggest culprit of carbonisation – but it is one of its biggest victims.

African countries, in general, do not have the same funding capabilities as the developed world, and priorities also differ. Poverty alleviation and economic participation/upliftment are understandably at the top of the list for most African governments and this means that limited funding needs to be allocated accordingly. In addition, recent conversations have highlighted the higher cost of debt for African nations, when compared to other sovereign issuances in emerging markets.

Despite these significant challenges, Africa has a lot going for it: we're unburdened by the need to decarbonise an “old economy”, as is the case with our Western counterparts, and the continent is blessed with immense renewable energy potential. Strategically harnessing these assets could not only fast-track climate action but also unlock significant economic opportunities for the continent.

To get there, however, we need to change our perspective from believing that fossil fuels are the only road to job creation, political power and economic growth. It shouldn't be “either/or” but rather, “and”. We must aim for more choice, less reliance on one energy type, and greater sustainability.

Eradicating fossil fuels will not happen overnight; the losses from flipping the switch prematurely would be too great.

Rather, our focus should be on what can be added to the energy mix, and the steps we can take to reduce our carbon footprint. Take natural gas, for example, generally viewed as the “lesser” of the fossil fuel evils. Natural gas and renewable energy can be quite complementary as part of a balanced energy strategy, especially during the transition to a low-carbon future.

We've seen, in real-time, major oil and gas companies drilling more and backtracking on their renewable energy targets and efforts. Yet, when natural gas, a by-product of oil drilling, is captured and used as fuel it is combusted more efficiently, producing lower carbon dioxide (CO₂) emissions compared to coal or oil. However, must ensure it is properly handled, as gas flaring or venting has a massive negative environmental impact.

What has changed, however, is that the typical excuse that renewable energy is “too expensive” has lost all weight. The build cost of renewable energy has reduced substantially over recent years while the trend for electricity grid prices in most countries has done the opposite. Globally, fuel prices have been highly volatile, with prices escalating in most countries on the back of political upheaval in the Middle East and Ukraine / Russia. And when compared to traditional power tariffs in countries like South Africa, annual renewable energy escalations are negligible.

The battle is no longer between clean energy and cheap energy; it is now significantly more affordable to go the renewable route.

Renewable energy is the continent's real sunrise sector.

The South African renewables industry has proven a case study for the rest of the continent. It has seen substantial involvement from the private sector, which has led to significant capital investment to maintain and improve infrastructure. It's creating jobs in both metros and rural areas, with a prime example being our SunCentral solar farm development in De Aar, Northern Cape where our operations will create more than 460 permanent and contract jobs. And innovations in renewable energy are saving SA businesses vast amounts of money, with solutions such as on-site solar, electricity wheeling, energy trading and aggregation helping make the switch to green energy not only possible but also profitable in the commercial and industrial sectors.

With the rise of the Independent Power Producer (IPP), African governments don't have to drive this transition on their own anymore. Each sector has a critical role to play, with success breeding more success.

Africa stands at a critical juncture, where the challenges of climate change intersect with the opportunity to redefine its energy future. The path to decarbonisation should neither be a sprint nor a stumble – it must be a deliberate, phased journey involving the collective effort of all stakeholders.

By embracing a balanced energy mix, encouraging innovation, and leveraging deregulation, Africa can transition to a low-carbon future without compromising its socio-economic priorities. Renewable energy isn't just an environmental imperative – it's an economic opportunity, a job creator, and a cornerstone for sustainable development.

It's time to flip the switch.

Distributed by APO Group on behalf of Starsight Energy.

2 December 2024

The Fierce Urgency of African Energy Banks

Location: News

By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

For more than a year, the African Energy Chamber (AEC) has been pushing back against steadily building pressure to halt new foreign investments in Africa's oil and gas industry.

To prevent catastrophic climate change, environmental organizations, financial organizations, and governments across Europe and North America have insisted that developing nations, including those in Africa, must immediately transition from fossil fuel production and usage to renewable energy sources like solar, wind, and hydrogen. Mind you, the majority of those making these demands are based in industrialized nations that were built on fossil fuels — oil and gas fueled their economic engines — yet they are unwilling to allow less developed nations to use fossil fuels to the same end. Even more troubling, the countries these groups are taking aim at have a wealth of natural resources under their feet, resources that can be monetized and used to build a better future.

We have explained, over and over, why African countries, businesses, and communities still need support from international oil companies (IOCs), foreign governments, and investment institutions for oil and gas projects. IOCs, for example, play an important role in knowledge sharing and helping Africans build valuable job skills. What's more, foreign oil and gas investments create opportunities for revenue that can be used to build and improve energy infrastructure — for both fossil fuels and renewables. And, by supporting natural gas projects, investors create a path for gas-to-power projects that help minimize the continent's widespread energy poverty.

In July 2021, when it became apparent that reasoning was not yielding results, the chamber went so far as to employ the same tactics the international community used against our members. We called for boycotts against financial institutions that discriminated against the African oil and gas industry.

But the calls to stop financing African oil and gas have only grown louder and more insistent. Most recently, during the 2021 United Nations Climate Change Conference (COP26) in Glasgow, more than 20 countries and financial institutions pledged to stop public financing for overseas fossil fuel projects. Europe then decided that gas was clean for Europe so it will be financed but for Africa, gas is dirty and will receive no funding. The United Kingdom and the European Union have also reportedly joined in the chorus of voices demanding a ban against developed nations providing subsidies for fossil fuels.

Other expectations for this year's conference include calls for member states to formally commit to triple their renewable energy capacity and double their energy efficiency across the board by 2030.

The thread tying all these pledges together, with respect to our work at the AEC, is that none of them bode very well for any future success stories from the African energy economy.

For those of us who care about Africa's oil and gas industry, it's time to face facts: We need to find a way to save it ourselves. The AEC is calling upon African states and the private sector to fund the African Energy Bank, an institution which is focused on funding African energy projects. The African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank) have paved the way. The idea is to create funding sources for all types of African energy — from oil and gas exploration to solar and hydrogen operations — so that projects will not be dependent on foreign support.

We can do this, and we must. Too much is at stake. We can't afford not to capitalize on recent discoveries such as the light oil found offshore Angola, the oil in Namibia's Orange Basin, the shale gas in South Africa's Karoo Basin, or the oil and natural gas off the coast of Côte d'Ivoire. Those are only a few of the important discoveries that occurred recently, and each represents critical opportunities for everyday Africans.

You may be wondering if African energy banks are a realistic goal. How can a continent that is struggling to bring many of its people out of poverty raise capital for energy projects? I believe it can be done. To begin with, African governments can set aside a percentage of their oil and gas revenues for new project funding. In its report, Africa Energy Outlook 2021, Rystad Energy projected that African governments' earnings from royalties, profit oil, and other taxes in 2021 would reach USD 100 billion. Even 1% of that amount would produce USD 1 billion dollars.

We can also raise capital by investing African pension funds in African energy projects. According to Cape Town-based investment firm, RisCura, local pension funds collectively manage around USD 450 billion of assets in sub-Saharan Africa, and they are actively looking for new places to invest. Why not encourage them to add oil, gas, and renewables projects to their list? Investing pensions in the energy sector is hardly a new practice. Some of America's largest pension funds are invested in fossil fuel producers, and an increasing amount of pension funds around the globe are investing in green energy projects.

Our options for raising capital don't end there. We should also seek the support of wealthy Africans who want to invest in a better African future. As of December 2023, total private wealth in Africa totaled approximately USD 2.3 trillion. That's not even including the African diaspora.

In May 2022, Afreximbank signed an agreement with APPO on the joint establishment of a special multi-lateral financial institution (MFI) – the African Energy Bank – to provide support for the shift away from fossil fuels. The agreement calls for APPO's member states to provide equity for the new institution and serve as its founding members, with Afreximbank acting as co-investor and providing organizational support.

The new bank will be able to reach more countries than either APPO or Afreximbank could do on their own, as their rosters are not identical: APPO has 15 member states, while Afreximbank has 51 and there is a significant amount of overlap, as Algeria and Libya are the only APPO members that are not also Afreximbank members. But the point remains that if the two institutions join forces, their combined efforts will go further.

Professor Benedict Oramah, the President of Afreximbank, explained it as follows in May 2022: “For us at Afreximbank, supporting the emergence of [the Africa Energy Bank] will enable a more efficient and predictable capital allocation between fossil fuels and renewables. It will also free human and other resources at Afreximbank that will make it possible to support its member countries more effectively in the transition to cleaner fuels.”

Not only do we have pathways for raising capital, we also have an example of the kind of banks Africa needs to finance its own energy projects, one that goes back decades. I'm talking about Afreximbank. In 1993, African governments worked with public and private investors to create a bank that would finance, promote, and expand intra- and inter-African trade. They succeeded. In 2020, Afreximbank received the Africa-America Institute's (AAI's) Institutional Institution of Excellence Award for its commitment to the creation and implementation of the African Continental Free Trade Agreement and its ongoing dedication to investing in education. AAI noted that between 2015 and 2019 alone, Afrieximbank disbursed more than $30 billion in support of African trade, including more than $15 billion for the financing and promotion of intra-Africa trade.

I say, let's build on Afreximbank's model. And not only that, let's cultivate a pool of investors who recognize and appreciate the importance of oil and gas to Africa. Capital from foreign countries and companies will always be welcome — as long as it isn't predicated on phasing out fossil fuels on their timeline. If they're pushing a rush to renewables, they're not going to be part of our solution.

With the support of one or more African energy banks, local oil and gas companies will have the financing necessary to acquire assets. They'll have the financing to build crude and gas pipelines across Africa and to facilitate the use of natural gas (including LNG) to power Africa, minimizing energy poverty and driving industrialization.

And African states and entrepreneurs will be able to finance the development of renewable energy operations, particularly blue, green, and grey hydrogen operations that create additional opportunities for Africans. Africa already has emerging green hydrogen operations in Mali, Namibia, Niger, and South Africa, and with the proper funding, could become a major green hydrogen exporter.

The AEC will support the energy bank initiative and work to bring potential participants together. Creating our own institutions to finance energy projects will send a clear signal to the marketplace that Africans are seeking to become leaders in scaling up private capital. It will show that we are advancing natural gas development and infrastructure while supporting low-carbon investments.

With the financing in place, not only will African companies be able to produce oil and gas, but they will also support local community development, develop green energy markets, and create jobs.

For many African countries, the oil and gas industry represents our best shot at giving millions of Africans the kind of jobs, living standards, and stability that developed countries have enjoyed for well over a century. We must hold fast to these goals and do what it takes to achieve them.

Distributed by APO Group on behalf of African Energy Chamber.

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19 November 2024

Agreements signed with battery energy storage projects

Location: News

Agreements signed with battery energy storage projects

Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has signed two project agreements and the commercial close of two projects appointed as preferred bidders under the first Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1.

According to the Department of Electricity and Energy, the two projects secure “a total of 360 MW/1440 MWh storage capacity under the country’s first grid-scale bid window”.

“Both projects, developed by EDF International and their project partners, Mulilo, Gibb-Crede, Pele Green Energy, and a community trust, will be located in the Northern Cape Province and will contribute a total of 180 MW/720 MWh storage capacity on the national grid.

“Oasis Aggeneis, with a total capacity of 77MW/308MWh will be located at Aggeneis Sub Station close to the town of Aggenys. Oasis Nieuwehoop, with a capacity of 103MW/412MWh, will be located at Nieuwehoop Sub Station close to Kenhardt. Project construction is expected to take no more than 24 months and the storage capacity is expected to come online no later than November 2026,” the department said in a statement on Monday.

The two projects are expected to attract investment of some R4.7 billion with local entity participation of around 42.23% and Black Economic Empowerment (BEE) ownership of 40% achieved across both projects.

“In support of the current economic challenges that South Africa is facing, the two projects have committed a total of 487 job opportunities (measured in job years) for South Africans, which includes 301 jobs during construction and 186 jobs during operations.

“The projects have committed to spending 20% of total project costs on local content during construction, and 20% on local content during operations.

“The projects have also made commitments of over R43 million over their 15-year lifetime, to be spent in areas such as Skills Development, Supplier Development, Bursaries for Black Students, Enterprise Development, and Socio-Economic Development initiatives,” the department explained.

Battery Energy Storage Systems (BESS)

The department explained that BESS technology has a critical role to play in “grid operation by storing energy during periods of less demand for electricity and releasing that energy when needed” – like during peak time.

“In addition, BESS provides grid stability through Ancillary Services for the System Operator. BESS further allows for more integration of renewable energy onto the grid,” it said.

To take advantage of this technology, at least four preferred bidders were announced in November last year with all four reaching commercial close.

“A further fifth project was appointed later [on] 28 March 2024, following value for money negotiations. This last project is finalising preparations and final conditions to reach commercial close in early 2025.

“A further two Battery Energy Storage bid windows [are] currently underway. Bid Window 2 is currently in evaluation phase with [a] bid announcement expected within the next few weeks. Bid submission for Bid Window 3 is planned,” the department concluded. – SAnews.gov.za

NeoB
Tue, 11/19/2024 - 10:51

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13 November 2024

Dismissed and Ignored: Keys to an African Lobby Group’s Success Being Overlooked by Climate Activists and Africa Oil Week

Location: News

By Ajong Mbapndah L.

In 2021, the citizen-driven African Energy Chamber-AEC (www.EnergyChamber.org), and its unapologetic position in support of the right of African countries to produce oil and gas spread like wildfire. They adopted a narrative of Drill Baby Drill shocking most western political establishment, African elites and pundits.

Within a short time, well funded backers were leaping at the chance to harness this new display of African public power backing the oil and gas industry led by a charismatic and well-connected US trained lawyer NJ Ayuk. He talks like a southern Baptist preacher and trial lawyer and religiously wears only cowboy boots. Ayuk had been mentored at the University of Maryland by Dr. Ron Walters, who was Jesse Jackson's campaign Manager and at William Mitchell College of Law by John Radsan who was Assistant general counsel of the C.I.A under George W Bush. In 2013, he became part of Global Shapers, a non-profit foundation created by the World Economic Forum to unite a community of young leaders. In 2015, he was named among the 10 most influential men in Africa by Forbes magazine.

Eventually, hundreds of energy groups across Africa translated their collective strength into substantial results, putting a message engineered by the African Energy Chamber to influence African political establishment to back the oil and gas industry during COP and also provide incentives for oil drillers. Oil and natural gas is not a dirty word in Africa thanks in large part to the crusade of the African Energy Chamber.

It's true that the AEC's anger at western wokeness and transition plans sometimes came across as extreme. While they showed that African voices can impact energy policy and international discourse, they may have also set the stage for increased divisiveness in a polarised energy discussion across the world. In some instances, observers believe the AEC pressured African leaders into backing a capitalist driven oil and gas industry at the expense of green energy. They gave home to Trump loyalist who wanted to deal with Africa.

Given even sharper language in 2021 and 2022, it's perhaps more important than ever to understand that the AEC's success wasn't dependent solely on hostility. Behind the scenes, the story is a bit more complex. And love them or hate them, the AEC showed that African voices really can add up to something big.

So, how did the AEC turn regular, even highly cynical, Africans into an army of engaged people defending the interest of Africa and oil and gas investors in Namibia, Nigeria, Angola, South Africa, Equatorial Guinea, Libya, Senegal, Algeria, Mauritania, Ghana, Mozambique, Uganda and many more countries? Here are some strategies that set the AEC apart, gained it instant attention, and built—in short order—real power.

These strategies aren't really secret, of course, or even necessarily new, but the AEC offers lessons that any grassroots group would be wise to review even when it is a capitalist organisation. After attending African Energy Week in Cape Town and talking to observers you understand a few things.

The AEC Gave Good Content And Sweets To The Media

The AEC content and position or energy transition and oil and gas were irresistible political theater for news media. Some of the early success was about novelty. An unusual African protest movement, featuring not only Africans but older, whiter, more conservative Europeans and Americans who weren't used to taking their views in public (that kind of action was considered by many whites, the domain of hippies and Lefties).

But beyond that, members' intensity and authenticity were key factors: their heart and soul, their true colors were on display and the media couldn't get enough. The AEC got massive coverage. Their members loudly embraced slogans and symbols, and most were extremely passionate and vocal. They demonstrated their commitment in authentic, home-spun ways that made great TV footage—that is, by brandishing provocative Drill Baby Drill signs. The attention they earned was tremendously exciting for participants, and when events garnered headlines, they encouraged others to join in and start AEC groups of their own in Nigeria, Namibia, Ghana, Equatorial Guinea, Angola, Senegal and Algeria.

The AEC Gave Africans A Safe Haven To Oppose A Western Driven Anti Oil And Gas Agenda

Many Africans were anxious about longstanding cultural shifts they felt were occurring in the climate change culture and strong calls to abandon oil and gas. Africans still have to deal with energy poverty issues and also industralisation that is lagging behind in the continent.

According to the International Energy Agency (IEA), more than 600 million Africans lack access to energy, around 900 million are without clean cooking. To solve this the African Energy Chamber has aggressively lobbied and pushed African nations to embrace an “All of the Above” energy strategy—which supports greater domestic production of oil and natural gas, renewable and nuclear energy, and critical mineral mining—would help to provide energy access and encourage development and job creation.

For many Africans, speaking their minds in public was daunting and unfamiliar. The AEC events prompted many people to speak out in public for the first time. People who had felt shut out, misunderstood, and alienated were encouraged to vent their frustrations and talk about themselves, their families, and what they wanted—and into a microphone, no less! Great early set up and as crazy as it sounds it worked.

Africans and oil industry for once felt safe. The western oil companies had found “their people.” Their voices finally mattered. Western oil companies felt for once that an African organisation spoke to their issues. The AEC spoke from the heart through their press releases.

Most importantly, speaking out made them feel like proper, boisterous Africans having their say.

The AEC Kept It Simple And Never Strayed Away From Its Core Purpose

The AEC has been laser focused on its core message around free markets, Drill Baby Drill, individual liberty, fiscal responsibility, and limited government intervention in the energy markets. They have been virtually lock stepped in agreement that these issues—and only these—were their primary focus.

Motivated largely by opposition to a radical energy transition that does not consider Africa's energy poverty needs and development, they built a solid and well-structured case against what they saw as a radical overreach by western governments. These values resonated powerfully with conservative whites and corporations in America and Europe who rallied support for the AEC, help sharpened their message and represent an agenda that any group could buy into. By sticking to these values, they avoided getting bogged down in arguments over more contentious issues that could divide, delay, or sidetrack their core base.

You need to watch how NJ Ayuk the Executive Chairman Keeps a clear and narrow focus and invites more people in and avoids alienating others over inevitable differences. By experimenting with this stripped-down approach, they have been able to avoid quibbles about top priorities and fast-forward to high-impact activities across Africa.

The AEC Built Its Muscle By Picking Fights It Could Win

While the rhetoric of the AEC favored sweeping Pan African change on how oil and gas industry is viewed and a rejection of western climate action, their actual achievements were huge, and they basically got the IEA and western governments to start listening to Africans. They got African Presidents and Ministers to be bold in their defence for oil and gas sector. They became the premier lobbying house for the oil and gas sector in Africa. They figured out where they could have an immediate impact and put their energies into small wins. Case in point, in 2021, Hyve group made a brutal and arrogant move of taking Africa Oil Week (AOW) to Dubai. The AEC saw an opportunity and produced a textbook rebuke of this British group. It recruited Blackwater's Erik Prinz, Robert Stryk Ryan Zinke (Trump's interior secretary) various American congressmen and former US Ambassadors to speak at its rival African Energy Week in Cape Town. They quietly built a relationship with the American Petroleum Institute and other US oil and gas groups and support came strong from the oil and gas companies like ExxonMobil, Total Energies, Chevron and many others. Since then, the Africa Oil Week brand by Hyve group has seen a gradual death with most of its staff defecting to the AEC or other companies. In 2023, sensing change the Biden administration deployed Joshua Volz, Deputy Assistant Secretary for Africa to attend the African Energy Week and meet with the African energy sector. American official Joseph McMonigle, Secretary General, International Energy Forum also gave a keynote speech at the event.

Small wins like African Energy Week or getting governments to approve projects for oil companies in a speedy format, gave the AEC the taste of victory and built momentum. And all the little victories tallied around Africa added up to a greater voice for the AEC. The AEC also scored strong victories across Africa for incentives to oil companies, getting them permits, license extensions, reduction in taxes, and passion oil friendly reforms.

Most organizations have broad, high-level goals, but it's worth remembering that every small victory can help pave the way in the direction you're going. In fact, you may want to purposefully pick a small, winnable fight, especially as you're getting started.

Climate Group Reaction

Climate activist have been stunned because they dismissed and overlooked the AEC. Climate activist and their allies ignore the AEC as it built a 4 million membership base something of a dream for any group. They decided to pummel the AEC and its leadership with a volley of attacks on the media then demonstrations at the AEC office and also in Cape Town. And yet from the blowback that erupted once the attacks started Africans rallied around the AEC and supported the AEC. Climate activists were surprised that an oil lobby group in Africa was being seen as innocent civilian under assault by a drone western activist. Green groups and their negativity were self-destructive and made it difficult for them to push a green energy message in Africa which a continent that has great potential for renewables.

Only at the African Energy Week will you have a closing panel with Oil and Gas stalwarts like Bruno Jean-Richard Itoua, Minister of Hydrocarbons of the Republic of Congo, Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil) of Nigeria, NJ Ayuk of the AEC, Florival Mucave, Executive Chairman of the Mozambique Oil & Gas Chamber, Eric Williams, Principal Consultant and President at Royal Triangle Energy Solutions inviting climate change zealots like David Le Page, Director-Coordinator at Fossil Free South Africa.

When I come to your events, I am booed and vilified, but here at the African Week, we welcome debates and diverse opinions and people even cheer for you when you make points, NJ Ayuk reminded David Le Page who looked flummoxed at the buoyant atmosphere and civility that greeted his presence.

“There is an amazing opportunity to transition as quickly as possible to renewable energy – if we can find the finance, and any new developments of oil and gas, no matter where they are developed in the world, risk the chance of pushing us past the point of stability, Le Page said.

Africa only accounts for 3% of global greenhouse gas emissions, NJ Ayuk schooled Le Page. “We need oil. We are not saying that we do not welcome solar, wind and renewable energy, but we understand the intermittent nature of these technologies. With oil and gas, you create a market where people do things for themselves rather than relying on others,” Ayuk said.

The Bottom Line: Restore Africans' Trust In Their Own Energy Sector.

So many people in the Africa and its energy sector feel isolated, frustrated, and powerless. Despite this, no matter how cynical or checked out they get, and no matter how divisive things seem, the vast majority of Africans still have faith in a foundational part of the oil and gas industry thanks to the AEC. Africa Oil Week has been sold to Paul Sinclair and he exited quietly to Ghana as the brand faces a natural death. Many observers wait to see what the AEC opinion on Hyve Group and Mining Indaba is. Will the AEC make a move?

Whatever you think of the AEC, one thing it did was restore trust in Africa's oil industry, showing that the grassroots—the public—can make a difference. Regular people who had long felt shut out of the process flexed their civic muscle in the AEC, and they saw quick and enormously satisfying results.

Distributed by APO Group on behalf of African Energy Chamber.

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10 November 2024

Limpopo Premier welcomes R120bn in investment pledges

Location: News

Limpopo Premier welcomes R120bn in investment pledges

Limpopo Premier, Dr Phophi Ramathuba, has welcomed the R120 billion in pledges made at the province’s fourth investment conference.

The conference was held last week in Polokwane.

“We extend our heartfelt thanks to the business sector and all industry leaders, who have partnered with us to uplift our province.

“These pledges are an important step in transforming Limpopo’s economic landscape, and we are confident that this partnership will bring substantial benefits to the people of Limpopo, who need access to enhanced services and opportunities,” Ramathuba said.

In a statement after the conference, the provincial government explained that the pledges will propel the province’s development goals.

“The pledged investments are aimed at fueling priority areas for Limpopo’s development, including green energy initiatives, critical infrastructure projects and catalytic ventures that will stimulate industrial growth and support the establishment of industrial parks.

“These projects are expected to create numerous jobs, ranging from short-term positions to full-time employment opportunities, significantly impacting local communities.

“Implementation of projects funded by these pledges will commence on 24 November 2024 and continue through October 2025. This commitment from the business sector shows the strong support for the province’s seventh administration and its focus on sustainable development and economic resilience,” the statement read. – SAnews.gov.za

NeoB
Sun, 11/10/2024 - 09:45

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8 November 2024

Eskom, French development agency sign R125 million grant agreement

Location: News

Eskom, French development agency sign R125 million grant agreement

Eskom and Agence Française de Développement (AFD) have signed a R125 million grant agreement to support the development of the power utility’s Tubatse Pumped Storage System (PSS) project.

The hydro storage system project is located in the Elias Motsoaledi Local Municipality in Limpopo and has been billed as a top priority project by the Infrastructure South Africa Programme.

Eskom Group Chief Executive (GCE), Dan Marokane, said the grant will provide South Africa and the power utility with another pathway to achieve its low carbon economy goals.

“Without large-scale facilities such as Tubatse, the management of intermittent power from renewable energy–wind and PV [photovoltaic] –would be very difficult without the kind of intervention that pump storage systems offer,” he said on Thursday.

The GCE added that the power utility has “developed a pipeline of more than 20 GW of clean energy projects to diversify its energy mix and reduce its emissions related to fossil fuel generation”.

“Over the next three years we have an ambition to execute at least 2GW of these projects. The clean energy projects will consist of a diversified capacity mix of renewable energy solar PV and wind, hydro, gas, nuclear and pump storage,” Marokane said.

The power utility described the Tubatse Pumped Hydro Storage System as a “mega installation with a power generation capacity of 1.5 GW” with a storage capacity of 21 GWh.

“Large-scale storage and grid services such as these are necessary to accommodate the rapid development of renewable energy in South Africa, as planned through the Just Energy Transition (JET) Investment Plan.

“Eskom plans to develop the Tubatse PSS project as a Public-Private Partnership and will intend to procure the services of a Transaction Advisor to conduct a thorough Private Sector Participation feasibility study and business case in the first quarter of 2026.

“This Transaction Advisor, to be financed by said grant funding, will support Eskom in procuring a private developer for the project’s implementation, which is scheduled for the 2025–2033 timeframe,” Eskom said.

Ambassador of the European Union to South Africa, Sandra Kramer, said of the grant agreement: “The partnership between Team Europe and South Africa continues to deepen. We are rolling out our Global Gateway investment programme in crucial areas such as the green energy transition.

“The Global Gateway grant funding provided here today will further unlock the immense potential for renewable energy and support South Africa to realise its ambitions for a greener tomorrow”.

AFD’s Regional Director for Southern Africa and Country Director for South Africa, Audrey Rojkoff, added: “AFD’s funding to Eskom reaffirms our commitment to support Eskom’s efforts to diversify its energy mix and maintain energy security, which will ultimately strengthen its capacity to respond to the growing energy needs and economic growth of South Africa”. – SAnews.gov.za

NeoB
Fri, 11/08/2024 - 09:11

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30 October 2024

Afreximbank Calls for Increased Collaboration to Accelerate the Green Energy Transition in Africa

Location: News

The eighth Babacar Ndiaye Lecture held at the Four Seasons Hotel in Washington D.C., on 26 October 2024, under-scored the need for African nations to strike a balance between short-term development imperatives and long-term climate goals.

Under the theme “Saving Lives Today versus Saving the Planet for the Future: Can the AfCFTA Resolve the Climate Change Dilemma” discussions centred on how the African Continental Free Trade Area (AfCFTA), Africa's most ambitious trade initiative, could serve as a vehicle for economic growth and environmental sustainability, positioning the continent as a leader in the global green transition.

The Lecture drew a distinguished audience of policymakers, academics, financial experts and climate advocates.

Speaking about Dr. Babacar Ndiaye in his opening remarks, H.E. Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank Group, said “Dr Babacar Ndiaye was most concerned by the long-term threats posed to humanity by climate change. He once said, "Climate change is the greatest threat to development, particularly in Africa, where millions of people depend on the environment for their livelihoods … Africa's economic transformation cannot happen without addressing climate change.”

Dr. Ndiaye's reflection on the impact of climate change was spot-on and intellectually deep.” But, “disappointingly, the global debate on climate has been so much focused on emissions reduction with the question of reducing its impact on Africa and other developing countries always reduced to a footnote. A call for Africa to decarbonise, when the continent has not even carbonised, poses a serious threat to the socio-economic development of a gas-rich continent that has at least six hundred million people without electricity.”

The African Continental Free Trade Area Agreement “is seen as a potent means of reducing carbon emissions as it is helping to domesticate industrial activities and minimise the carbon emissions caused by shipping of commodities to far-away lands for value addition and reshipping to Africa and elsewhere. We believe that The AfCFTA could offer a pathway to a just transition, enabling local industrial value addition while protecting the planet.”

Professor Yemi Osinbajo, SAN, GCON, the Immediate Past Vice President of the Federal Republic of Nigeria, delivered a powerful address titled “Sustainable Infrastructure for Africa's Future: Harnessing Innovation and Partnerships.” He spoke passionately about the advantages of the AfCFTA and its potential to transform Africa's trade landscape, reduce carbon emissions and foster innovation in green industries.

“There are two obvious advantages to a fully operational AfCFTA.The first is that 42% of African countries, aside from North Africa, now have legislation prohibiting the export of raw ores or minerals before being processed. This legislation gives African countries the benefit of jobs and revenues from local processing and manufacturing.

“The second advantage of the AfCFTA is that shipping is a major source of carbon emissions. Under current trade practices, a large share of African raw materials are exported to other regions, where they are processed or manufactured into finished products, usually using fossil fuel power sources, before being shipped back to Africa for consumption. This cycle contributes to higher emissions and constitutes a loss for African countries that do not reap the value chain gain from beneficiation. Intra-African trade in finished goods will substantially reduce this massive cause of global emissions,” he said.

The reduction of emissions by intra-African trade has been the subject of several empirical studies. Professor Osinbajo referred to a recent ECA/ CEPII study titled “Greening the African Continental Free Trade Area Agreement's Implementation" published in December 2023, which found, inter alia, that implementing the AfCFTA can boost intra-African trade by 35% in 2045 while increasing GHG emissions by less than 1%, compared to no AfCFTA or climate policies.

These studies do not factor in using renewable energy sources in the processing and manufacturing of traded goods, an assumption of the Climate Positive Growth paradigm, which would again substantially reduce emissions.

Professor Osinbajo cited mining bauxite in Guinea as an example. If Guinea, which has 25% of global deposits of bauxite, processed the bauxite it mines to aluminium with renewable energy in readiness for export, Guinea could save the world 335 million tonnes of carbon dioxide equivalent (CO2e) per year, which is approximately 1% of global emissions, and create 280,000 jobs and generate $37 billion of additional revenue. If it chooses to sell the aluminium within Africa, it will again save the huge shipping cost to countries thousands of miles away.

A Bloomberg study done for the African Development Bank (AfDB) in 2021 on the manufacture of battery precursors found that manufacturing battery precursors in the Democratic Republic of the Congo (DRC), which has plenty of lithium and cobalt, is three times cheaper than manufacturing it in the US, EU and China. Manufacturing in the DRC would extend value chain opportunities to other African countries, they would need manganese from Zambia, Tanzania, Gabon and South Africa to contribute to its capacity to produce these battery precursors. Manufacturing using renewable energy could significantly reduce the cost of manufacturing. Africa's abundant renewable energy has very low seasonality or intermittency, making it possible to reliably provide a renewable baseload to power continuous industrial production.

“The AfCFTA empowers African countries first to add value to materials and specialise in areas of national comparative advantage, and also to work together to trade more beneficially with the rest of the world,” said Prof Osinbajo.

He futher said that “Most African countries depend on fossil fuels for their energy needs and for fossil fuel rich African countries, this is also a major source of export earnings and fiscal revenues. Ostensibly in keeping with their net zero obligations, there has been a growing trend amongst development finance institutions to withdraw from fossil fuel investment. These actions include the World Bank's decision to cease funding for upstream oil and gas development in Africa and the restrictions on financing downstream gas development by the European Union, the United Kingdom, and the United States. Clearly, the implications of these actions are dire, where there are no immediate alternative sources of power and the cost of the transition to cleaner fuels may be prohibitive. Some studies show that divesting from fossil fuels could reduce GDP by as much as USD$30 billion for Nigeria, USD$22 billion for Algeria, and USD$19.3 billion for Angola.”

H.E. Dr Rania A Al-Mashat, Minister for Planning, Economic Development and International Co-operation, Arab Republic of Egypt said that while the “African continent is the least responsible for carbon emissions, it has the biggest burden in terms of financing climate change for developmental needs - such as food and water security, and access to energy.

She called for greater collaboration with national and international stakeholders “We need to work together; we need to bring the experiences from other places so that Africa can push forward with respect to development and sustainable economic growth.”

In her Goodwill Message, Ms. Amina J. Mohammed, Deputy Secretary-General of the United Nations and Chair of the United Nations Sustainable Development Group, spoke about the rapidly closing window to prevent the worst impacts of climate change. She addressed the fact that many African countries are mired in debt, exacerbated by extended crises with little access to long-term concessional financing to invest in sustainable development.

“With adequate access to financial resources at a reasonable cost, renewables can dramatically boost economies, grow new industries, create jobs and drive development, including by reaching the over 600 million Africans living without access to power,” said Ms Mohammed.

She also stressed the importance of prioritising inclusive policies that empower women and youth when building climate-resilient economies.

“By harnessing the collective might of the AfCFTA, Africa can make strides in addressing both climate action and sustainable development by promoting regional integration and fostering green industrialisation.

“The AfCFTA can help build climate-resilient economies while creating jobs, reducing poverty and strengthening food security.”

The eighth Babacar Ndiaye Lecture also reinforced Afreximbank's commitment to leadership in financing sustainable infrastructure and trade policies across the continent.

Distributed by APO Group on behalf of Afreximbank.

Media Contact:
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: press@afreximbank.com

For more information, visit: www.Afreximbank.com
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About the Babacar Ndiaye Lecture
The Babacar Ndiaye Lecture is an annual event designed to foster dialogue around Africa's development challenges and explore practical solutions through policy, trade and diplomacy.

The Lecture honours Babacar Ndiaye, a former President of the African Development Bank, for his visionary leadership in advancing Africa's economic growth.

Afreximbank has hosted this Lecture every year since 2017 in honour of the late Dr. Babacar Ndiaye, the fifth President of the African Development Bank. Dr. Ndiaye transformed the Bank during his decade-long leadership and was also instrumental in establishing several other enduring Pan-African institutions, including Afreximbank, Shelter Afrique and the African Business Roundtable.

About Afreximbank
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Area (AfCFTA), Afreximbank has in partnership with the African Union Commission and the AfCFTA Secretariat launched the Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA agreement. The AfCFTA Secretariat and the Bank have created a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA.

At the end of December 2023, Afreximbank's total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

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16 October 2024

Confirmed Speakers for the 3rd International African Energy, Oil, and Gas Summit 2024

Location: News

African Peace Magazine UK (https://AfricanPeace.org/) is honoured to announce the distinguished line-up of speakers for the 3rd International African Energy, Oil, and Gas Summit, set to take place from October 23rd to 25th, 2024, at Hilton, Windhoek, Rev. Michael Scott Street, Windhoek, Namibia. This summit brings together some of the most influential leaders, industry experts, and change-makers in the energy sector across Africa. These individuals have significantly shaped their respective industries and will contribute profound insights into Africa's energy future. The Charity Golf Tournament and other Tour activities would commence from the 26^th to the 30^th of October 2024. The Speakers are;

Hon. Justice Suleiman Galadima (JSC, OFR, CFR, Rtd) – Chairman of the Board, African Peace Magazine UK

Hon. Justice Galadima is a revered figure in Nigeria's legal community, having served as a Justice of the Supreme Court of Nigeria. He is known for his unwavering commitment to justice and governance in Africa. As Chairman of African Peace Magazine, Justice Galadima plays a critical role in fostering dialogue around peace, security, and development across the continent.

HRH Sir David Serena-Dokubo Spiff – Ada IX, Paramount Ruler of Spiff Town, Bayelsa State

HRH Sir David Serena-Dokubo Spiff is a prominent traditional leader from Bayelsa State, Nigeria. His deep commitment to the socio-economic advancement of his people and his influence on the region's energy and resource management make him a vital voice at the summit. He actively advocates for responsible management of natural resources in his community.

Dr. Martha Namundjebo-Tilahun – Chairperson, United Africa Group, Namibia

Dr. Martha Namundjebo-Tilahun is a powerful figure in Namibia's business sector and beyond. As the Chairperson of United Africa Group, she has been a driving force behind several large-scale projects in hospitality, real estate, and renewable energy. Her leadership in advancing Africa's energy landscape and sustainable development strategies is exemplary.

Abiola Metilelu – CEO, PressPayNG

Abiola Metilelu leads PressPayNG, a groundbreaking fintech company that offers education financing solutions. Under his leadership, PressPayNG is bridging the financial gap for students across Nigeria, directly impacting the education and energy sectors by creating a more skilled workforce for the future.

Dr. Udochu Ogbonnaya – Executive Director, Green Energy International Ltd (GEIL)

A visionary in Nigeria's oil and gas industry, Dr. Udochu Ogbonnaya is shaping the future of sustainable energy in Africa. As the Executive Director of GEIL, he drives innovation in the extraction and development of energy resources while maintaining a focus on environmental responsibility.

Mrs. Frieda Tunyoleni Amuela – Extractive Industry Law Expert

Mrs Amuela is a respected expert in the legal frameworks governing Africa's extractive industries. Her insights into compliance and legal challenges in oil and gas operations have made her a sought-after voice in regulatory discussions. Her work ensures that Africa's natural resources are managed with accountability and transparency.

Mr. Immanuel Mulunga – Former MD, National Petroleum Corporation of Namibia (NAMCOR)

Mr. Mulunga is a seasoned expert in Namibia's oil and gas industry, having held key leadership roles, including serving as Managing Director of NAMCOR. His deep understanding of petroleum resource management in Namibia and his strategic leadership have had lasting impacts on the country's energy landscape.

Engr. Chukwuemeka Woke – Director-General/CEO, National Oil Spill Detection and Response Agency (NOSDRA)

Engr. Woke leads NOSDRA, Nigeria's primary agency responsible for monitoring and responding to oil spills. His efforts in promoting environmental sustainability in the face of oil extraction activities have been instrumental in safeguarding Nigeria's ecological future.

Professor Geoffrey Shakwa – Founder & MD, Anti-Corruption Education Consultancy

Professor Shakwa is a staunch advocate for anti-corruption measures in Africa, having founded the Anti-Corruption Education Consultancy. His work aims to educate and promote transparency, which is critical for sustainable development in Africa's energy sectors.

Mr Tassius Chigariro – Chief Executive Officer, Old Mutual Namibia

Tassius Chigariro heads Old Mutual Namibia, a leading financial services company. His strategic expertise in investments and financial management has made Old Mutual a key player in supporting economic growth in Namibia and throughout Africa's energy sectors.

Dr. Joseph Tolorunse – Authority Secretary and Legal Adviser, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

Dr. Tolorunse brings a wealth of knowledge in regulatory frameworks, ensuring Nigeria's midstream and downstream petroleum sectors operate within best practices and international standards. His work strengthens Nigeria's position as a key player in the global energy market.

Olusegun Ilori (Esq) – Executive Director, Green Energy International Ltd (GEIL)

A legal expert in energy law, Olusegun Ilori has been instrumental in shaping GEIL's business strategy, ensuring compliance with global energy regulations while advocating for sustainable practices.

Engr. Sunday Babalola – Executive Director, Green Energy International Ltd (GEIL)

Engr. Babalola's expertise in engineering and operations has been pivotal to GEIL's success in executing oil and gas projects with a focus on innovation and sustainability.

Alh. Auwalu Abdullahi Rano (OON) – Founder & CEO, A.A. Rano Nigeria

Alh. Rano is a prominent entrepreneur in Nigeria's oil and gas sector, with his company, A.A. Rano, being a leading player in petroleum marketing and distribution. His business acumen has significantly contributed to Nigeria's energy supply chain.

Prof. Anthony Adegbulugbe – CEO, Green Energy International Ltd (GEIL) & Former SA to the President of Energy

Prof. Adegbulugbe is a renowned energy expert with a wealth of experience in energy policy and management. As CEO of GEIL, he is at the forefront of pushing Africa towards a greener energy future.

Dr. Martin Harris – Senior Geosciences Researcher, University of Namibia

Martin Harris is a leading geoscientist in Namibia, focusing on energy resource exploration and development. His research and contributions have enhanced the understanding of Namibia's geological wealth.

HRM Makitu III – Kingdom of Kongo, Angola

As the traditional ruler of the Kingdom of Kongo, HRM Makitu III is a respected leader who advocates for the preservation and responsible use of natural resources within his kingdom, including energy resources that are key to Angola's economic development.

Engr. Wole Ogunsanya (FNSE) – Chairman/CEO, Geoplex Drillteq Limited

Engr. Ogunsanya leads Geoplex Drillteq, a company offering cutting-edge drilling solutions for Africa's oil and gas industry. His leadership in innovation has made Geoplex a leader in the sector, offering technological solutions that enhance efficiency. Engr. Wole Ogunsanya is the current Chairman of the Petroleum Technology Association of Nigeria. PETAN is an association of Nigerian Indigenous Technical Oilfield service companies in the upstream and downstream. PETAN is the primary trade and advocacy association of the oil and natural gas industry in Nigeria, representing nearly 100 members involved in various aspects of petroleum.

Mr. Tarah N. Shaanika – CEO, Namibia Asset Management

Tarah Shaanika oversees Namibia Asset Management, a leading investment company in Namibia. His experience in financial management and investment has propelled the company into playing a crucial role in funding energy and infrastructure projects in Namibia.

Aggrey Ashaba – General Manager, Alliad, Uganda

Aggrey Ashaba is a business leader with deep expertise in the oil, gas, mining, and energy sectors. As General Manager of Alliad in Uganda, he plays a key role in driving the country's energy strategy, focusing on sustainable development.

Daniel Tuyoleni Williams – CEO, Mind Space Consults

Williams is a respected business consultant whose firm, Mind Space Consults, provides strategic insights and advisory services in energy and business development across Africa, helping companies navigate complex markets and regulatory environments.

Alh. Saleh Baba Rano

A key player in Nigeria's oil and gas sector, Alh. Saleh Baba Rano has been instrumental in the growth and development of the sector, bringing strategic insights and leadership to discussions around energy in Africa.

Abimbola Okoya – Founder, Basic Education Africa

Abimbola Okoya is a passionate advocate for education in Africa, founding Basic Education Africa to provide accessible learning opportunities to underserved communities. Her work directly impacts the future of Africa's workforce, particularly in the energy and technology sectors.

Professor Jude Osakwe – Faculty of Computing and Informatics, Namibia University of Science and Technology

Professor Jude Osakwe is a prominent academic and researcher with a focus on Data Governance, Data Analytics, ICT in Education, and ICT for Development (ICT4D). He holds various professional certifications in project management, big data analytics, business intelligence, and digital marketing. His extensive research work and involvement in international conferences make him a vital contributor to discussions on the integration of ICT into development strategies across Africa. Professor Osakwe's dedication to bridging the gap between theory and practical implementation of ICT solutions has positioned him as a respected figure in the academic and business sectors.

M. Jinot Razafimamonjy – Director of Hydrocarbons, Ministry of Energy and Hydrocarbons, Madagascar

M. Jinot Razafimamonjy serves as the Director of Hydrocarbons in Madagascar's Ministry of Energy and Hydrocarbons. His leadership in managing the country's hydrocarbon resources has been instrumental in driving economic growth and ensuring sustainable development in the energy sector. His participation at the summit will provide critical insights into Madagascar's approach to energy management and its vision for the future of its oil and gas industry.

S P Jika Ogbeche – Assistant Comptroller General (ACG), Air Nigeria Immigration Service (NIS)**

S P Jika Ogbeche holds a senior leadership role within the Nigeria Immigration Service, overseeing the Air Border Division. His extensive experience in managing Nigeria's air borders and contributing to national security efforts will bring a unique perspective to discussions on energy security and the role of governance in the sector.

Engr. Farouk Ahmed – Authority Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

Engr. Farouk Ahmed is at the helm of Nigeria's NMDPRA, playing a critical role in regulating and ensuring the sustainable development of Nigeria's midstream and downstream petroleum sectors. His leadership has been instrumental in modernizing the regulatory framework, promoting investment, and ensuring energy security in one of Africa's most important energy markets.

Dr. Lloyd C. Williams – United States of America

Dr. Lloyd C. Williams is an esteemed expert in the fields of energy and sustainability, hailing from the United States. With a distinguished career marked by contributions to both the public and private sectors, Dr. Williams is dedicated to advancing clean energy initiatives and fostering innovation in oil and gas. His global perspective will add invaluable insights into the discussions at the summit.

Mr. Tassius Chigariro – Chief Executive Officer, Old Mutual Namibia

As the CEO of Old Mutual Namibia, Mr. Tassius Chigariro is a key figure in the financial services sector, driving initiatives that support sustainable investments in energy and infrastructure. His experience in leading one of Africa's most reputable financial institutions positions him as an influential voice in the intersection of energy finance and economic development.

Cydolian Raveloson – Acting Director General, Madagascar Hydrocarbons Office

Cydolian Raveloson is the Acting Director General of Madagascar's Hydrocarbons Office, where he plays a pivotal role in managing the country's energy resources. His efforts are focused on ensuring the efficient exploitation and management of Madagascar's oil and gas reserves, contributing to both the nation's economic growth and energy security.

These esteemed speakers join an already impressive lineup, including leading figures from government, academia, and the private sector, all dedicated to advancing Africa's energy future. Their participation is set to elevate the summit's discussions, fostering meaningful collaborations and forward-thinking strategies.

"The diverse group of speakers at the upcoming IAEOG Summit 2024 reflects our heartfelt commitment to inspiring discussions that lead to tangible outcomes. These industry leaders are passionate about finding ways to alleviate poverty, create job opportunities, and enhance our GDP. Together, we envision a transformative event that enlightens the public and fosters collaborative efforts, ultimately driving meaningful change for the betterment of our communities."- Chairman Hon. Justice Suleiman Galadima JSC, CFR, OFR (Rtd.)

Distributed by APO Group on behalf of African Peace Magazine.

For more details on the full list of speakers, agenda and for sponsorship, participation, partnership, Exhibition and speaking opportunities and all other enquiries please contact:
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International Affairs
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25 September 2024

Sungrow Wins 2024 Red Dot Design Award for Its Isolarcloud

Location: MyPR

Sungrow, a global leader in photovoltaic (PV) inverters and energy storage systems, proudly announces that it has been honoured with the prestigious 2024 Red Dot Design Award, often referred to as the Oscars of the design world. This accolade is awarded to Sungrow’s intelligent energy management platform, iSolarCloud. The innovative app empowers South African homeowners …

24 September 2024

Critical minerals sector key to driving global economic growth

Location: News

Critical minerals sector key to driving global economic growth

President Cyril Ramaphosa has emphasised the importance of the critical minerals sector in driving global economic growth and sustainability.

By leveraging key sectors such as mining, energy, and manufacturing, the President said South Africa is set to improve its business environment and attract much-needed investment.

He was addressing the African Minerals Forum hosted by the Business Council for International Understanding (BCIU) and Prosper Africa on the sidelines of the United Nations General Assembly (UNGA 79), in New York, USA, on Monday.

He highlighted that four months ago, South Africa held national general elections, which ushered in a Government of National Unity, where 10 political parties have come together to coalesce around a common agenda for economic growth and sustainable development.

President Ramaphosa underlined South Africa's commitment to reducing greenhouse gas emissions and mitigating climate change through the country's Just Energy Transition Plan. This plan aims to guide the shift from coal to renewable energy, while also ensuring equitable economic opportunities for affected communities.

“South Africa's and Africa’s critical minerals sector has a crucial role to play in this regard, and we recognise the importance of collaboration with other countries to develop the potential of our critical minerals sector.

“The US in particular has established expertise in advanced mining technologies, automation and sustainability practices.

“We want to strengthen our ties with US companies and institutions to foster technological advancements, enhance supply chain efficiencies and attract investment into our mining sector,” the President said.

The President also emphasised that South Africa strongly endorses the United Nations Secretary-General’s position paper on Critical Energy Transition Minerals, where he highlights the importance of beneficiation, benefit sharing, local value addition and economic diversification.

“It would not be an understatement to say that the minerals that lie beneath the soil of Africa are powering the green energy revolution. Thirty percent of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.

“South Africa has substantial reserves of platinum group metals, manganese, vanadium as well as chromium.

“These resources are fundamental to the development of cutting-edge technologies that drive progress in various sectors. What will be critical is to ensure that this progress does not leave Africa behind,” he said.

The President stressed the need to avoid perpetuating colonial-era exploitation, where African countries primarily export raw minerals. He said that by focusing on beneficiation and domestic processing, African nations could see significant economic growth.

President Ramaphosa highlighted that beneficiation and local processing of critical minerals could increase the continent’s GDP by 12% or more by 2050.

He cited estimates suggesting that African countries could generate USD 24 billion annually in GDP and create 2.3 million jobs by investing in mining beneficiation and domestic processing.

President Ramaphosa highlighted the strides made by SASOL, South Africa’s flagship petrochemical company, in leading green hydrogen technologies research and development.

“As the global automotive industry moves towards Electric Vehicles and New Energy Vehicles, we are leveraging our rich experience with automotive production to get some of the world’s leading automotive manufactures with a footprint in South Africa to produce more their green vehicles in our country,” he said.

Despite improvements in the beneficiation of South Africa’s mineral exports, President Ramaphosa admitted that more needs to be done.

He underscored the country’s commitment to creating a supportive policy framework for the critical minerals sector, focused on streamlining regulations, fostering innovation in mining technologies, building workforce skills, improving transport and logistics infrastructure, and incentivising investment.

South Africa's five-point policy approach aims to create a supportive environment for the critical minerals sector. This includes simplifying regulations, supporting research and development in mining technologies, investing in workforce skills, improving logistics infrastructure, and incentivising domestic and international investment.

“South Africa also has a beneficiation strategy that seeks to translate the benefits of our country’s mineral endowments into a national competitive advantage.

“As the UN Secretary-General’s paper has noted, Critical Energy Transition Minerals can transform economies, create green jobs and foster sustainable local, regional and global development,” he said.

President Ramaphosa further stressed that for the potential of critical minerals to be fully realised, both mineral-producing nations and their end-user countries must embrace inclusivity.

He emphasised the importance of creating decent work opportunities, eradicating exploitative practices such as child and forced labour, and ensuring human rights protections.

Local beneficiation and industrialisation were highlighted as priorities, alongside environmental safeguards to ensure sustainable extraction practices.

The President urged for a long-term focus on inter-generational equity, recognising that critical minerals are vital for solving global challenges like climate change, energy, and food insecurity.

He called on US companies to collaborate in fostering sustainable development.

“By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development.

“I call on US companies and investors to join us on our journey,” he said. – SAnews.gov.za

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Tue, 09/24/2024 - 10:07

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24 September 2024

President Ramaphosa urges US business to invest in SA’s growing economy

Location: News

President Ramaphosa urges US business to invest in SA’s growing economy

President Cyril Ramaphosa has called on US businesses to deepen their investment ties with South Africa, highlighting the country's renewed focus on economic recovery and structural reform.

Speaking at the SA-US Interactive Business Forum in New York on Monday, the President emphasised the progress made under South Africa's Government of National Unity (GNU) and the vast opportunities available to foreign investors.

He said this is a “timely intervention”, referencing his first visit to the US since South Africa's general elections in May, which led to a coalition government of political parties committed to inclusive growth and job creation.

“The advent of the Government of National Unity has renewed investor optimism in the South African economy. The message I bring to US investors today is that this optimism is well-placed.

“South Africa is firmly on the road to recovery, and we invite you to be part of this journey. Investments in South Africa are secure. Our business environment is stable. This is supported policy certainty and regulatory safeguards,” the President said.

He added that South Africa intends to stay the course on the structural economic reform process, on scaling up investment in key infrastructure, and on improving the business operating environment.

The President noted South Africa’s success in attracting investment, revealing that the country had achieved its target of raising R1.2 trillion (approximately USD 63.6 billion) ahead of schedule in 2022.

“We have announced a new target of approximately R2 trillion or approximately USD 100 billion over the next five-year period up to 2028.

“The far-reaching structural reforms we have implemented over the past six years have opened up the country to increased levels of investment that continues to grow,” the President said.

Ramaphosa particularly underscored the potential in the clean energy sector, which has attracted significant investment, supporting South Africa’s commitment to decarbonisation and energy security.

"We are equally committed to a Just Energy Transition that is inclusive, that take our developmental needs into account, and that leaves no community behind.

“We have a supportive and enabling industrial policy that incorporates amongst others expanding the special economic zones, driving export-led growth, and harnessing the potential of the Africa Continental Free Trade Area or AfCFTA. In January 2024 we began preferential trading under the AfCFTA,” he said.

The President emphasised that the Government of National Unity is furthermore committed to prudent monetary and fiscal policy and to strengthening regulatory and legislative frameworks to combat corruption.

The President also highlighted the importance of strategic partnerships with US businesses, especially in sectors like advanced manufacturing, energy, healthcare, and infrastructure.

“South Africa and Africa is ripe for investment in financial services, advanced manufacturing, energy, healthcare, infrastructure development, mining, science and technology and other sectors. South Africa is also developing the value chains of the future.

“With substantial reserves of critical energy transition minerals, we are positioning ourselves to be at the forefront of the green energy revolution,” he said.

He added that as the country with the world’s largest platinum group metal reserves, South Africa has a competitive advantage when it comes to the production of sustainable energy technologies, including electric vehicles, new energy vehicles and renewable energy components.

President Ramaphosa praised the collaboration between the New York Stock Exchange (NYSE) and Johannesburg Stock Exchange (JSE), following the 2022 Memorandum of Understanding. He stated that the partnership between the two stock exchanges “promotes cross-border investment and drives economic growth on a global scale.”

The President further highlighted the US as one of South Africa’s most valued trade partners, noting that bilateral trade totalled USD 17.6 billion in 2022.

He also praised the impact of the African Growth and Opportunity Act (AGOA) in fostering trade and creating jobs in sectors like automotive, agriculture, and precious metals.

With Africa's population expected to reach 2.5 billion by 2050, President Ramaphosa painted a bright picture of the continent's economic prospects, noting that the African Continental Free Trade Area (AfCFTA) would "drive a wave of industrialisation and create dynamic regional value chains."

“This too presents opportunities for US businesses and investors, and opens up new markets for their goods, products and services.

“Mutually beneficial trade and investment not only unlocks the dynamism and potential of an entire continent. It will also aid Africa’s efforts to achieve the Sustainable Development Goals,” the President said.

In closing, President Ramaphosa reassured investors of the stability and security of investments in South Africa.

“South Africa is open for business. Sustainable and inclusive growth spurs development and creates jobs.

“Together, we can forge a path to shared success and progress, leveraging our combined strengths to achieve enduring prosperity for our people,” the President said. – SAnews.gov.za

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Tue, 09/24/2024 - 11:01

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21 September 2024

Celebrating This Year’s 25 Under 40 Energy Women Rising Stars

Location: News

As Africa's energy sector continues to grow, a new generation of women is breaking barriers and redefining leadership in this critical industry. The African Energy Chamber (AEC) (www.EnergyChamber.org) proudly announces the 2024 edition of the 25 Under 40 Energy Women Rising Stars – a group of outstanding individuals whose innovation, perseverance and passion are transforming the landscape of African energy. These trailblazers are not only reshaping a traditionally male-dominated field but are also playing a vital role in the journey to end energy poverty by 2030. The AEC proudly honors these women as they lead the charge toward a more sustainable and equitable energy future.

In alphabetical order:

Amena Bakr, Senior Research Analyst, Energy Intelligence

Amena Bakr is a Senior Research Analyst at Energy Intelligence. Specializing in the energy transition, corporate strategy and market analysis, Bakr leads insights on oil markets, OPEC policies and political trends in the Middle East and Gulf Arab region. Her previous roles include Chief OPEC Correspondent and Dubai Deputy Bureau Chief, where she earned accolades such as the OPEC Award for Best Journalist and the IAEE Excellence in Written Journalism Award. Bakr holds a BA in Business Administration from the Arab Academy for Science, Technology & Maritime Transport, Egypt.

Amoetsoe Mkwena, Senior Associate, Watson Farley & Williams (Middle East)

Amoetsoe Mkwena is a Senior Associate at Watson Farley & Williams, specializing in energy and infrastructure with a focus on Africa. She advises on international projects, including the $15 billion Simandou project in Guinea. Mkwena's expertise includes power, renewables, oil and gas, and mining. Her legal skills and ability to bridge cultural divides make her a key player in Africa's energy sector.

Asha Amani, General Manager, INTERAFCON

Asha Amani is the General Manager at INTERAFCON, where she blends strategy and leadership to drive growth in complex energy projects. With seven years in Industrial Engineering and five years in the energy sector, Amani excels in business strategy, opportunity identification and project management. Her previous role as a Business Development Consultant at Tetco Consulting focused on delivering tailored solutions for the energy, engineering, and construction sectors.

Blandine Biaou, Geological Engineer, Head of Research and Prospection Department, SNH-Benin

Blandine Biaou, Head of the Research and Prospection Department at SNH-Benin, specializes in hydrocarbon exploration. She has optimized Benin's energy sector through resource management and contract revisions. Biaou has developed a modern data center and interactive database, contributing to national projects and representing Benin in international conferences, positioning it as a hydrocarbon hub.

Charné Hollands, Deputy Editor, Energy Capital & Power

Charné Hollands is the Deputy Editor at Energy Capital & Power, the leading investment platform for the African energy sector. She produces content on the entire energy value chain in Africa, with a focus on oil, gas, renewable energy and energy policy. Hollands holds a Master's in Media Studies from the University of Cape Town and has co-authored African Energy Chamber: Road to Recovery.

Emokiniovo Dafe-Akpedeye, Managing Partner, Compos Mentis Legal Practitioners

Emokiniovo Dafe-Akpedeye, a leading dispute resolution lawyer, specializes in complex oil and gas cases. She has represented Shell Petroleum and serves as company secretary for the Ebendo Host Community Trust Board. With degrees from Oxford and Bristol, she shapes oil and gas law and is implementing digital solutions to streamline board operations.

Fatimat Adenike Olanrewaju, General Field Engineer, SLB

Fatimat Adenike Olanrewaju, a Chemical Engineering graduate, is a General Field Engineer at SLB, focusing on wellhead installations and emissions reduction. She excels in a male-dominated field and leads community service through SLB's SEED initiative, advocating for gender diversity and mentoring.

Gracia Munganga, Senior Technical Advisory, ABT Global

With a Master's degree in Chemical Engineering from the University of Cape Town, Gracia oversees operations for the company, which has been designing and commissioning solar PV systems across sub-Saharan Africa since 2018. Her career includes roles at GreenCape, Anaergia Africa, the Climate Innovation Centre South Africa (CIC-SA), and the Carbon Trust.

Ifeoma Adeoye, CEO, IMSE Energy Resources Limited

Ifeoma Adeoye, CEO of IMSE Energy Resources Limited, leads the company in EPCI services and innovative crude evacuation technology. A graduate of the University of Manchester and Warwick, she also founded Business Nest Investments and BNI Insurance Brokers Limited, to empower and protect people and businesses through microfinance and insurance.

Jamilla Massamba, Health Safety and Environment Manager, SLB Congo

Jamilla Massamba, Health, Safety & Environment Manager at SLB Congo, leads HSE initiatives across Africa. With a Master's in Environmental Management Sciences, she has conducted over 100 audits and received awards for her work. Massamba also mentors young women in STEM and leads green energy projects.

Janice Faria, CEO, Enagol: Energias de Angola

As CEO of Enagol, Janice Faria has elevated the company's national and international profile. Under her leadership, Enagol competes globally and services International Oil Companies, setting a precedent for local enterprises in the global market.

Jocelyne Machevo, Communication, Commercial & Marketing Manager, Vivo Energy Mozambique

Jocelyne Machevo, formerly with Eni Mozambique, played a key role in the Coral FLNG Project and led the company's local brand transformation. Now at Vivo Energy Mozambique, she focuses on energy transition and decarbonization projects.

Lilian Kamanja, Electrical Engineer, Kenya Power

Lilian Kamanja is a Renewable Energy Specialist at Kenya Power with over nine years of experience in electrical engineering, network operations, and renewable energy development. She holds a BSc from the University of Nairobi and an M.Tech from IIT Delhi, focusing on renewable energy projects that enhance power accessibility and reliability.

Kanni Touray, Deputy Director General, Petroleum Commission, The Gambia

Kanni Touray, The Gambia's youngest and first female Deputy Director General at the Petroleum Commission, has enhanced the organization's efficiency and visibility. She champions sustainable development and energy transition, positioning The Gambia as a growing player in the global energy market.

Lizette Bouddhou, Human Resources Manager, SLB Congo and Gabon SLB

Lizette Bouddhou, HR Manager at SLB Congo and Gabon, drives diversity and workforce development. She leads recruitment and training initiatives, boosts employee engagement, and advances community outreach through educational partnerships, supporting women in STEM.

Maggie Mutesi, Managing Editor, Mansa Media

Maggie Mutesi is the Managing Editor at Mansa Media, with over 15 years of experience in major media outlets including CNN, BBC and CNBC. Her reporting spans over 30 African countries, focusing on trade and investments. At the BBC, she managed BBC Africa's daily live program, Money Daily. Mutesi has also extensively covered the Africa Continental Free Trade Agreement, working with the African Union and Afrochampions Initiative to enhance awareness among Africa's private sector.

Marilia Sitoe, Subsea Engineer, Eni Rovuma Basin

Marilia Sitoe, a Subsea Engineer at Eni Rovuma Basin, focuses on optimizing Mozambique's gas sector. Her work includes deep-water gas production and subsea infrastructure for Coral South FLNG. Sitoe's research supports Mozambique's economic growth and sustainability goals.

Mervin Azeta, Engineer, SLB

Mervin Azeta, a leader at SLB, has advanced from field engineer to corporate strategist. Recognized for her impact on African communities and the global industry, she is active in non-profit boards and connects young Africans with top leaders, fostering learning and inspiration.

Munolwisho Elizabeth Ipangelwa, Green Hydrogen Advisor, GIZ

Munolwisho Elizabeth Ipangelwa, Green Hydrogen Advisor at GIZ, advocates for women in oil and gas and green hydrogen development in Namibia. She has educated over 200 Namibians and leads green industrialization studies to boost local industries and reduce youth unemployment.

Ozioma Agu, Partner, Stren & Blan Partners

Ozioma Agu, a Partner at Stren & Blan Partners, excels in high-profile energy and infrastructure transactions. Her work includes advising on Mobil and Shell divestments and renewable projects. Agu has earned awards for her expertise in oil and gas and green hydrogen.

Pauline Murari, Contracts Manager SLB Angola, Central and East Africa

Pauline Murari, Contracts Manager at SLB, is known for her negotiation skills and leadership. She has driven growth in SLB's regional portfolio and contributed to projects like the East African Crude Oil Pipeline. Murari supports STEM education and local development.

Pearl Enyam Akosua Akude, Business Line Job Delivery Lead, SLB

Pearl Enyam Akosua Akude, with over 35 wells drilled, is a leader in the energy sector. She handles complex projects, trains engineers, and has contributed to innovations like TerraSphere and Net Zero Development in Africa, impacting the region's energy landscape.

Rita Bagaine Kagoro, Talent Acquisition Manager SLB: Angola, Central and East Africa

Rita Bagaine Kagoro, a Ugandan Petroleum Engineer, has seven years of experience and holds degrees from China University of Petroleum and Delft University of Technology. Her roles include Measurements and Logging While Drilling Engineer and Drilling Product Engineer. Kagoro has innovated drilling technologies to enhance efficiency and reduce CO₂ emissions. She is passionate about leadership, mentorship, and advocating for diversity in hiring and women in energy.

Tania Silva, CEO, Angola LNG Marketing

Tânia Silva is the CEO of Angola LNG Marketing, the company's first female and youngest CEO. She oversees LNG sales, liquids contracts, and the shipping fleet. Previously, Silva was Head of Non-Operated Assets at Sonangol Gás e Energias Renováveis, S.A., where she managed non-operated assets and contributed to renewable energy projects. Her career is marked by leadership and innovation in the energy sector.

Tokollo Matsabu, Women Leader in Energy & Climate Fellow, Atlantic Council

Tokollo Matsabu is a 2024 Women Leaders in Energy and Climate Fellow and Director at Patlong Advisory, a consulting firm focused on energy programs and carbon sequestration in Africa. She is pursuing an MS in Global Energy and Climate Policy at the University of London's School of Oriental & African Studies, with a focus on critical minerals. Matsabu has a background in financial journalism and has conducted risk analyses for various stakeholders in the Global South. She holds a Bachelor's degree in International Relations, Media and Writing from the University of Cape Town.

Distributed by APO Group on behalf of African Energy Chamber.

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17 September 2024

Red Ribbon Communications Elevates Brand Recognition in the Renewable Energy Sector

Location: MyPR

Red Ribbon Communications, a leading PR agency specialising in tech PR and sustainability, has achieved a significant milestone through its successful collaboration with Rubicon, a leading South African sustainable technology provider. The strategic partnership has not only solidified Red Ribbon’s position as an expert in providing PR services to renewable energy solutions but has also …

8 September 2024

Minister George weighs in on future of circular economy in Africa

Location: News

Minister George weighs in on future of circular economy in Africa

Minister of Forestry, Fisheries and the Environment, Dion George says the circular economy has the potential to address some of Africa’s “environment complexities”.

The Minister was speaking at the African Circular Economy Alliance (ACEA) Ministerial briefing dinner held in Côte d'Ivoire.

The circular economy refers to a model in which products are re-used and recycled, waste is reduced, and products are re-designed.

“The circular economy holds the potential to address many of the environmental complexities we face, including the issues related to the theme of this AMCEN [African Ministerial Conference on the Environment] 10th Special Session — drought resilience, land degradation, and desertification.

“Circular agriculture, for instance, offers solutions for regenerating degraded soils and reducing water stress. By utilising organic waste as a resource, we can enhance soil fertility, improve crop yields, and restore ecosystems,” George said on Friday.

He emphasised that tackling plastic pollution, “which continues to degrade our lands and rivers”, is as important.

“The ACEA must play a prominent role in providing technical knowhow on [the] circular economy and extended producer responsibility implementation in processes such as the Intergovernmental Negotiating Committee (INC) process to develop a legally binding instrument on plastic pollution, including in the marine environment.

“In addition, the recent research by the United Nations Environment Programme (UNEP) reveals that agricultural soils may receive greater quantities of microplastics than oceans, affecting both the quality of our soils and our food systems. This is where a circular economy can play a key role in mitigating and addressing plastic pollution,” the Minister explained.

Taking the lead

George told the gathering that Africa – with all of its rich natural endowments – must be at the forefront of change.

“Africa must take the lead in developing sustainable alternatives, promoting recycling technologies, and integrating circular economy principles into the plastics value chain. Moreover, we must consider the role and governance of critical minerals, which are essential for the global green energy transition.

“Africa’s mineral wealth is unparalleled, but we must extract and manage these resources in an environmentally and socially responsible manner. A circular approach can ensure that we maximise the value of these materials while minimising environmental and social harm.

“This includes developing frameworks for ‘materials as a service’, extending the lifecycle of products, and fostering technological innovation to reduce the need for new extraction.”

The Minister highlighted that land has a “critical role” to play in Africa’s future circular economy.

“Africa’s rich biodiversity and vast landscapes are both our greatest asset and our greatest responsibility. The Abidjan Legacy Programme, launched at the UNCCD [United Nations Convention to Combat Desertification] COP15 in May 2022, provides a clear roadmap for advancing towards Land Degradation Neutrality by 2030.

“I believe that integrating circular economy principles into this programme will not only help us restore degraded lands but will also contribute to building resilient communities and achieving food security.

“We have the opportunity to redefine our economic model, not only for the benefit of our environment but also for the future prosperity of our people. Let us seize this moment, using the power of circularity to combat environmental degradation, create jobs, and build the sustainable Africa we envision in Agenda 2063,” George concluded. – SAnews.gov.za

NeoB
Sun, 09/08/2024 - 13:06

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3 September 2024

President calls for investments in SA

Location: News

President calls for investments in SA

By Nosihle Shelembe

Beijing, China - President Cyril Ramaphosa has appealed to the business sector in China to invest in South Africa and make use of the great opportunities that exist for growth and development.

“South Africa presents a great opportunity for companies in Shenzhen to deepen their global value chains,” the President said on Tuesday.

The President made the remarks during the Shenzhen Business Roundtable at the occasion of the State Visit to China.

“With the capabilities that your companies have, we encourage you to play a more active role in our economy for mutual benefit,” he said.

Impressed by how Shenzhen has over four decades transformed into a leading digital supply chain hub, the President said South Africa can learn important lessons from Shenzhen.

Shenzhen is home to the most innovation-based technology start-up companies in China.

“Shenzhen is now a leader in the knowledge economy. We are keen to learn more about the city’s journey towards becoming a global centre of technology, innovation and growth. As we work to develop our economy, we value advice, support and technical assistance in planning, infrastructure and skills development.

“As we undertake this just and inclusive energy transition, we see many opportunities for growth and job creation in the green economy,” the President said.

South Africa has made a firm commitment to reduce its carbon emissions in line with global commitments.

“We are doing so at a pace and in a manner that is appropriate to our country’s development path.

“We have introduced policies to promote the development of the electric vehicle industry in South Africa.

“We are certain that companies such as BYD and CATL will find South Africa a unique and advantageous location that can serve as a hub to reach other markets,” the President said.

He said as a global leader in green energy and infrastructure, Shenzhen could be an important partner for South Africa as the energy sector undergoes a major transformation.

“Over the last few years, regulatory changes have stimulated substantial new investment in electricity generation capacity, mainly from renewable sources.

“We now have pipeline of over 130 confirmed private sector energy projects that will produce approximately 22 500 MW of electricity,” Ramaphosa said.

READ: China to assist SA in alleviating poverty

South Africa is also making significant investments in the electricity transmission infrastructure.

“In addition to securing our country’s energy supply, these investments will lay the basis for the further growth of our advanced manufacturing sector.

“This is further supported by the implementation of the African Continental Free Trade Area, which will drive a new era of industrialisation in South Africa and across the continent.

“With its abundant renewable energy resources and significant deposits of the minerals that are needed to drive green growth, South Africa is well-positioned to be a leader in the green energy and related industries,” the President said. – SAnews.gov.za

nosihle
Tue, 09/03/2024 - 12:38

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15 August 2024

Innovative Financing and Policy Support: Accelerating Renewable Energy Development in Africa (By Ana Hajduka)

Location: News

By Ana Hajduka, founder and CEO of Africa GreenCo (www.AfricaGreenCo.com).

As Africa's energy sector deregulates, exciting opportunities open up for financial innovation to benefit consumers. Private-sector buyers and traders can mitigate default risk and provide certified green energy at lower cost, writes Ana Hajduka, founder and CEO of Africa GreenCo.

Africa's renewable energy potential is undeniable, but it remains largely untapped. The problem is that the financing landscape for renewable energy and other projects in Africa was previously reliant on state utilities as buyers.

The scale of projects that could be financed in a country were then limited by the fiscal capabilities of that country and the sovereign guarantees it could provide.

This traditional model of relying on countries to provide such guarantees has faced recent challenges, because of increasing debt burdens, and shifting economic priorities.

Opportunities have therefore emerged for innovative financial approaches that will ensure more guarantees can be acquired from other sources and that risk can be diversified across a portfolio of suppliers and customers. This would see more projects achieving financial close, to ultimately provide more African people with clean energy.

There is also room to not only grow new renewable energy supply, but to create new renewable energy markets on the continent, where that supply can be sold.

As a consequence, the market is opening up to allow alternative buyers of new renewable energy, which can utilize existing regional competitive energy markets to diversify its risks – buyers such as GreenCo.

This is extremely relevant at the moment. Legislation like South Africa's Electricity Regulation Amendment Bill, is set to open up the electricity sector to new supply and trading models. This foreshadows the opening of a competitive spot market for electricity trade in South Africa – linking in the future the South African spot market with that of the Southern African Power Pool.

Namibia did something similar a couple of years ago, as did Zambia.

These regulatory market developments are important as they facilitate innovation and new private sector business models through which there can be a scale up of bankable offtake agreements for new supply. The problem in the region is not lack of projects. It's not lack of funding. It's earning enough lender trust to lend on the back of a 20-25 year power purchase agreement backed by a private sector buyer without state fiscal support.

Transmission capacity

Transmission constraints are another factor in this emerging scenario. The development of the electricity sector across the region effectively has a ceiling, determined by the available transmission network for new generation.

Previously, development finance institutions would only fund state utilities, and then only when it was proved that sufficient generation would be coming on board to utilize any new transmission infrastructure.

Now, thanks to the growing liberalisation focus in the region, allowing new private sector participants to buy and trade power, these transmission funding inflows can be facilitated. This new supply will be critical to making new transmission investments bankable.

If the private sector can sufficiently guarantee that any proposed new capacity coming on board will utilise the necessary transmission infrastructure, that new capacity effectively backs the viability of the new transmission investing – bringing a direct value add to the state utilities in South Africa and the rest of the SADC region.

Regulatory readiness

But for all of this to fall into place, we need a convergence of the relevant regulatory readiness – and we are already seeing this across the region. In many SADC countries, new legislation is providing the regulatory clarity that the private sector requires to venture into supply, transmission and trade.

The entire ecosystem must work for new entrants, and lenders. Until now, lenders have seldom considered state utilities to be creditworthy, and they have required significant fiscal guarantees to cover the power-purchase obligations of those utilities.

That model is a double whammy. Not only does it encumber utilities with debt for new generation, but it hits the national fiscus as well.

In South Africa, for example, the widely respected REIPPP process has brought online a significant amount of new generation. However, once the South African government started reporting on the process in accordance with IMF fiscal transparency regulations, this added an additional 36% to the contingent liabilities of the national treasury – almost $15 billion - overnight. That is money that can no longer be channeled into education, health and other key infrastructure development (water, transmission etc).

The REIPPP model has been extremely successful in the electricity sector, but it has perhaps outlived its usefulness. There are other priorities, and the private sector should be sufficiently capable to deliver on its own, with the lending community partnering accordingly.

The REIPPP model can be replicated in cases such as storage tenders, and in the transmission space. While transmission is usually considered a government function, it would certainly be possible to incentivize the private sector – and lenders – to enter the space.

New licensees

Across the region, markets are liberalising rapidly. South Africa has shown it can happen almost overnight, as in the case of the country's generation regulations. This has allowed third-party wheeled projects, from generators directly to customers, and facilitated new license applicants in the market such – such as GreenCo.

This shows how market thinking about the development of the electricity sector has fundamentally changed. There is collaboration like never before.

For GreenCo, events like the forthcoming AOW event offer opportunities to align with mining, commercial and industrial offtakers, as well as suppliers and IPPs. For an entity like ours, it's also a chance to show potential customers and suppliers the bankability of our own offtake; that lenders have confidence in our power purchase agreements.

Financial innovation must happen in a way that makes lenders comfortable. What that looks like in our case is that all our payment obligations are backed by an internationally AA- credit rated guarantee provider GuarantCo.

We are entering the South African market operationally ready to supply customers within South Africa and outside; and with financial readiness in the form of innovative guarantee structures to be considered bankable in the market.

The ultimate beneficiaries of this financial innovation must be the consumers. Many are looking to decarbonise their operations – for climate change reasons, and to make their products competitive on international markets.

Affordability is another key consideration. In our case, by being able to provide sufficient operational and financial risk mitigation to the lenders of the generators that supply to us, we can supply electricity far more affordably.

Around 70% of the costs of a generation or renewable energy project is from the cost of debt. Therefore, the more bankable an offtaker is, the lower the debt costs, and the cheaper the electricity – a clear demonstration of the benefits of financial innovation for the end consumer.

AOW: Investing in African Energy unites industry leaders to develop policy, share discoveries, secure investment, and shape Africa's energy future. The event runs from October 7 – 11 at the CTICC.

Distributed by APO Group on behalf of AOW: Investing in African Energy.

About GreenCo:
GreenCo is a renewable energy buyer and trader operating in Southern Africa (Zambia, South Africa, Zimbabwe and Namibia); purchasing power from renewable energy generators and selling that electricity to utilities, private sector offtakers (i.e. commercial and industrial users), national power trading markets and to the competitive markets of the Southern African Power Pool (SAPP). GreenCo is an active trader on SAPP and holds a number of applicable licenses covering its operations within the Southern African region. Through its activities, GreenCo will increase the supply of, and demand for, finance for energy projects, and mobilise private sector capital more quickly towards critical and transformative capacity addition. For more information please see: www.AfricaGreenCo.com

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AOW: Investing in African Energy

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25 July 2024

Solar geyser rollout benefits Woodyglen residents

Location: News

Solar geyser rollout benefits Woodyglen residents

The Woodyglen community in Hammarsdale in KwaZulu-Natal will now enjoy cost savings and reduced energy consumption as the area goes green following the installation of new solar geysers in their households.

In a move towards embracing green energy, the eThekwini Municipality in KwaZulu-Natal has completed the installation of solar geysers in 700 homes in Woodyglen.

The project aims to significantly reduce electricity consumption and costs for residents.

Ward 6 councillor, Bless Majola, commended the project’s completion and announced plans for expansion of the project into other areas of the ward.

Majola said the municipality has ensured the transfer of skills during the installation process.

“Young people from the community have been trained to install and maintain the geysers, creating around 30 temporary jobs. We expect to employ more young people as the project progresses,” Majola said.

Project Manager of Gemmed Services, Lungelo Ngcobo, emphasised the geysers’ durability, with a lifespan of up to 15 years and a one-year warranty.

“Our work adheres to the Department of Mineral Resources and Energy standards. Beyond installation, we prioritise skills transfer to empower the community for future maintenance needs,” Ngcobo said. – SAnews.gov.za

GabiK
Thu, 07/25/2024 - 12:04

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