Standard Bank’s total SA renewables underwrite more than R10bn

24th June 2014 By: Terence Creamer - Creamer Media Editor

Standard Bank’s total SA renewables underwrite more than R10bn

Rentia van Tonder

Banking group Standard Bank reports that it has, to date, underwritten more than R10-billion-worth of funding to support the roll out of renewable-energy projects in South Africa.

The projects have arisen as a result of the first two bid windows under government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Head of renewables Rentia van Tonder, who previously led the Industrial Development Corporation’s green business unit, indicates that Standard Bank is also supporting bid-window-three projects and has appetite to participate in the upcoming fourth bid window, the closing date for which is August 18.

“The sector remains attractive and will continue to remain a key focus for future growth,” she says.

To date, 64 projects with a collective capacity of more than 3 900 MW have emerged through the REIPPPP process, attracting greenfield investments of more than R100-billion.

Van Tonder reports that Standard Bank has underwritten projects with a combined capacity of 940 MW, with 121.5 MW of that capacity having already been connected to the grid.

The bank supported the 27 MW MetroWind Van Stadens wind farm project, which was among the first to enter commercial operations during 2013.

It was also the sole mandated lead arranger and underwriter for both the 22 MW Herbert solar project and the 72.5 MW Kalkbult solar project, both located in the Northern Cape.

The bank is also pursuing power projects in the rest of Africa, but its renewables focus is mainly in South Africa, owing to a lack of dedicated programmes to stimulate renewables investment across the rest of the continent.

The bank has also taken a “dynamic” approach to setting limits to its renewables exposure and Van Tonder, who joined the group in February, says there is  appetite to participate in the next bidding round.