in depth green capital
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By Jaco Visser
N O G N I K BAN R E W O P N A E L C
able energy build w ne re ’s A S ng ni tio on ac is could become ity from government th ar ut cl B of y. th ck al la a he te ill pi st es is D or r. vestment in this sect in r fo e tit pe ings, writes Jaco Visse th ap r e he th ot e, g on am y, programm nt to ensure policy certai ils fa t en m rn ve go if d subdue
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hile the government’s plans to restructure the sources of South Africa’s power generation over the next decade are ambitious, lack of funds can constrain any ambition. But is seems as though the appetite for funding renewable energy projects in SA remains intact – even as several risks stwill linger. The sector, if the government’s policy on energy gets put into action and moves forward, may prove a much-needed light at the end of the local economic tunnel. It may even potentially boost Eskom’s cash
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flow as well. But in order for this to materialise, the caveat remains: National Treasury must continue guaranteeing the power purchase (offtake) agreements signed with independent power producers (IPPs).
The appetite for renewables
Since 2012, funders forked out R192bn to invest in renewable energy, either through debt or equity investments over seven procurement bidding rounds (which included calls for large and small suppliers) finweek 16 July 2020
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