Surging Covid-linked borrowing costs pose threat to Africa’s energy transition

The surge in borrowing costs affecting most African countries in the wake of the economic and fiscal harm that has accompanied the Covid-19 pandemic poses a serious risk to the much-needed recovery in energy investment across the continent, which is set to collapse by 30% in 2020. International Energy Agency (IEA) executive director Dr Fatih Birol, who together with African Union Commission (AUC) infrastructure and energy commissioner Dr Amani Abou-Zeid co-chaired the AUC-IEA Second Ministerial Forum on Tuesday, stressed that a strong investment recovery was urgently required to improve energy access across the continent, which was poised to retreat for the first time in seven years in 2020.
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Western Cape launches Municipal Energy Resilience project

The Western Cape government has launched its three-year Municipal Energy Resilience (MER) project to assist municipalities to take advantage of the new energy regulations, which may include buying energy directly from independent power producers (IPPs).
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Eskom’s turnaround strategy to bear first fruit in April 2021

Eskom CEO André de Ruyter says progress is being made in the unbundling of the utility and that “by April [2021], we should see a change”.

He noted that the negative impact of load-shedding on the economy is well known and it is something that Eskom wishes to put behind it as quickly as possible.

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Nedbank provides financing options for solar power

Banking institution Nedbank is exploring financing options for solar photovoltaic (PV) installation for homeowners and has implemented several options for businesses wanting to install solar PV plants. Nedbank Home Loans strategy head Bruno Cing’andu noted during a November 24 webinar, hosted by the South African Photovoltaic Industry Association, that Nedbank Home Loans is exploring financing for solar owing to it aligning with the group’s strategy and brand positioning.
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A ‘just transition’ is complicated – panel

As South Africa emerges from the Covid-19-induced economic crisis, the most strategic objective would be to relieve the economy and its growth path from the stronghold of insufficient access to sustainable and competitive power generation, advisory Pan-African Investment and Research Services founder and CE Dr Iraj Abedian has said.

He has published a research paper on a just energy transition, which states that even before the pandemic struck, the country had already recorded a technical recession, it being the second in just two years, which is in part owing to the State-owned energy utility Eskom’s inability to supply adequate and reliable electricity.

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De Ruyter calls for upscaling of power procurement plans as he questions whether coal IPP will …

Eskom CEO Andre de Ruyter has again called on government to open the way for the procurement of more new electricity capacity in addition to the 11 800 MW outlined in a recently gazetted Ministerial determination, cautioning that the 1 500 MW of new coal included in the determination is unlikely to be built in the timeframes outlined, if at all. Speaking to broadcaster Bruce Whitfield as part of a PSG-organised webinar, De Ruyter said that, even if the capital could be raised for new coal, the projects would struggle to secure environmental approvals and the commissioning schedule envisaged in the Integrated Resource Plan of 2019 (IRP2019).
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