Twelve renewable energy projects that will generate 1.2 gigawatts (GW) of electricity have secured R22bn financing from Absa.
This brings the total number of independent power producer projects financed by Absa to 33, producing a combined 2.9GW of power, the bank said in a media release on Thursday.
Absa said it is financing seven wind, four solar and one biomass project following the Department of Energy’s latest bidding round under its renewable energy independent power producer programme (REIPPP).
"The latest round of renewable energy projects in SA has demonstrated that it is relatively and comparatively cheaper to produce energy from renewable energy plants," Absa’s head of power, utilities and infrastructure financing, Bhavtik Vallabhjee, said.
The bulk of the projects will deliver power at below R0.70/kilowatt hour (kWh), compared with the cost of thermal power plants, which are typically much more expensive, said Absa.
"The REIPPP has resulted in more than R200bn in direct investments and has the potential to reshape the South African energy landscape. It has also earned international recognition for the professional manner in which it has been rolled out," Absa said.
Beyond SA, Absa said it is considering financing renewable energy projects in Ghana, Zambia, Kenya and Tanzania.
"Several countries are actively promoting investment in this sector. There is opportunity for investors to invest in renewable energy, which they can possibly do with hybrid power plants," said Vallabhjee.
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