Financing renewable energy – Standard Bank
South Africa has a high level of renewable energy potential and the South African Government’s Renewable Energy Independent Power Producer Procurement (REIPPP) Programme is a mechanism to promote the development of renewable energy sources. South Africa aims to secure a total of 17 800 megawatts of renewable energy by 2030. Standard Bank Group (SBG) is committed to helping to establish a renewable energy sector in South Africa. We are active in advising, arranging finance for and funding renewable energy projects under the REIPPP Programme and we are dealing with a large number of project developers to this end. Renewable energy projects currently represent a third of our project finance energy portfolio and include wind, hydro and geothermal power stations. Standard Bank was the sole mandated lead arranger and underwriter on the following two projects.
Herbert WW24 is a 20 megawatt photovoltaic project located in the Northern Cape Province of South Africa. It has signed a power purchase agreement with Eskom and will begin supplying Eskom with electricity as early as October 2013 and will be fully online by April 2014. Herbert WW24 is owned by AE-AMD Renewable Energy (Pty) Ltd, Old Mutual Ideas Fund, Tenesa, Exoport and an Educational Trust. The power plant is being constructed and will be operated by Tenesol, a photovoltaic module manufacturing company based in Cape Town with its head office in France.