Africa|Coal|Energy|Financial|Gas|Petroleum|Power|PROJECT|Projects|Refinery|Solar|Storage|Sustainable|Power Generation|Power-generation|Infrastructure
Africa|Coal|Energy|Financial|Gas|Petroleum|Power|PROJECT|Projects|Refinery|Solar|Storage|Sustainable|Power Generation|Power-generation|Infrastructure

More finance needed for Africa's energy transition opportunities

1st December 2022

By: Reuters


Font size: - +

Africa's transition to cleaner fuels and power generation presents investors with opportunities across the value chain, but more direct financing is needed on projects, the head of a South African independent power producer, said on Thursday.

Brian Dames, chief executive officer of African Rainbow Energy & Power, said the shift to cleaner energy in South Africa for example, meant a massive addition of new generation capacity with strong growth potential.

"South Africa quite simply has to add more than 50 000 MW of new capacity. Most of that is going to be renewables," said Dames, speaking on a panel at the Reuters NEXT conference.

Africa's most industrialised nation is going through record power outages this year as its unstable coal-fired power stations, which account for more than 70% of generation capacity of around 58,000 MW, struggle to meet demand.

The South African government has unveiled a five-year $84-billion transition plan to cut carbon emissions and harness other economic opportunities from the energy transition.

The country aims to curb the share of coal in its power generation to around 38% by 2031, decommissioning old plants, and ramping up wind, solar and gas generation to around 47% during the period, according to a plan presented to parliament by state utility Eskom.

Dames, who headed Eskom from 2010 to 2014, said African Rainbow Energy and Power has invested in more than 700 MW of wind, solar and biomass generation.

"We want to build an African energy champion based on clean energy. We have projects of around 2.8 GW that we are going to close next year," Dames said, adding that the company was eyeing electricity trading and expanding in other African countries.

However, a key question that remains to be answered on African's energy transition and its capacity to adapt to the impact of climate change, is that of finance.

Despite pledges by developed nations, governments and companies have seen little direct financial inflows into projects in Africa, Dames said, adding that there were still constraints on getting finance to the continent.

Anibor Kragha, executive secretary of the African Refiners and Distributors Association, acknowledged that projects on the continent were struggling to tap available finance for energy transition.

"We need to have a pool of capital designated for decarbonisation projects for Africa that can go beyond the commercial banks to the development finance institutions, so that we can actually execute in a meaningful and sustainable manner," Kragha said while speaking on the same panel.

He said the association was putting together a register of projects and finding partners for two funds, one for liquefied petroleum gas development across the continent for clean cooking, and another for bankable refinery and storage and distribution infrastructure projects.

"Any project without financing is just an idea," said Kragha,

Edited by Reuters



Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.


Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/07/2024)
12th July 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.244 0.298s - 173pq - 2rq
Subscribe Now