South Africa’s fourth-largest bank, Nedbank, reports that it is a natural progression, as a green bank with a strong green mandate, to provide debt finance to the emerging renewable-energy projects in South Africa.

“We are aggressive in pursuing the opportunities in this sector and are con- fident that commercially viable projects will meet the debt funding requirements. South Africa has an abundance of natural resources, such as wind and radiation, which makes this sector attractive,” says Nedbank lead principal for energy Sakkie Leimecke.

The industry is new and evolving and it will be a significant contributor to the economy in the years to come. “The renewable-energy industry has attracted many international and local developers, who have invested signifi- cant amounts of money in developing projects in anticipation of the successful implementation of the renewable-energy feed-in tariffs (Refits). “Government, the National Energy Regulator of South Africa and other role-players, are working hard to create a regulatory framework that will create the foundation for the industry,” he adds.

Nedbank is currently focusing on all qualifying technologies for the current Refit scheme, such as photovoltaic solar, landfill gas, biomass concentrating solar and small hydro sectors.

Several developers have approached the bank for finance and they are currently assessing these projects, he says.

Meanwhile, the bank is confident that the regulatory framework will be finalised shortly and create a developing envi- ronment for this sector. Engineering News reported that the Department of Energy is confident that the review of the Renewable Energy White Paper (of 2003) would be con- cluded by the end of the first quarter of 2011.

At that stage, it is expected that the Refit phase one will be oversubscribed and that the unsuccessful developers are expected to bid for the Refit phase two programme.

“Important aspects for a successful project include the assessment of the natural resource data, such as wind data, land rights, environmental-impact assessments, grid connections and sup- porting infrastructure. “As this is a new industry, it can reasonably be expected that the projects will have strategic and experienced international partners in their development teams to ensure successful implementation,” he explains.

“South African banks are awaiting the finalisation of the Refit programme and are ready to support the renewable- energy industry,” he concludes.

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