Clean energy debt approved for SA

File photo: Reuters.

File photo: Reuters.

Published Jul 23, 2013

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Investec Bank Plc said it's able to provide R8 billion in debt funding for clean-energy projects in South Africa as the country adds wind and solar output.

The money would be used to finance plants in the nation's third renewables bidding round, Robert Gecelter, a member of Investec's Project and Infrastructure Finance team, said today in Johannesburg.

South Africa, seeking to cut dependence on coal for power, intends to add 3,725 megawatts of renewable-energy capacity by the end of 2016 with five tenders. That may help state utility Eskom meet demand as it struggles to fund maintenance and expansion in the continent's biggest economy.

"We expect round three to be very competitive," Gecelter told reporters. The second round attracted bids from Electricite de France SA, Tata Power Co. and Acciona SA. The deadline for submissions in the third is Aug. 19.

Investec has participated in about R20 billion of financing for South African clean-energy and renewable ventures so far, including R6.4 billion of debt, according to Fazel Moosa, head of the Project and Infrastructure Finance team. The projects are needed to ensure sufficient electricity supply for industry, he said.

"Our power supply is actually constraining growth" in the country, Moosa said. The bank is also "looking broadly in Africa" for projects, including in Ghana, Kenya and Mozambique, he said.

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