Grid Africa said yesterday that it had secured a R50 million equity investment facility from Rifuwo Energy Partners for the advancement of renewable energy projects in South Africa.
Specialising in renewable energy solutions such as solar, Grid Africa also operates in Zambia, Zimbabwe and Kenya.
Last month, the South Africa head-quartered renewable energy solutions company partnered with Zimbabwean mining companies to develop a 72MW solar power plant that could help the mine operators save up to $9.2m yearly.
The company has now secured an additional R50m in equity financing from Rifuwo Energy Partners, an independent power producer investor backed by South Africa’s Public Investment Corporation.
“This funding will be pivotal in advancing renewable energy projects across South Africa at a crucial time as the nation braces for a rise in energy costs,” said Grid Africa.
Although electricity availability has improved in South Africa under Eskom, business leaders say current and proposed tariffs are unsustainable and will drive cost of doing business in the country.
This comes as Eskom has applied for staggering 36% increase in tariffs to National Energy Regulator of SA. Grid Africa said this signalled a “substantial hike in overall energy costs, which is expected to particularly impact business” customers.
In light of this, Grid Africa said it was committed to developing solar energy solutions aimed at mitigating these rising costs. Businesses in South Africa have been installing solar power plants while others have been signing power purchase agreements with renewable energy producers, mainly solar.
“The recent changes in energy security in South Africa present a unique opportunity for businesses to deploy more solar energy projects, providing a buffer against escalating energy prices,” said Norman Moyo, CEO of Grid Africa.
“With decreasing costs in solar technology and lithium batteries, we can further enhance energy efficiencies Grid Africa recently expanded its operations into Zambia, a southern African country that is also currently facing significant challenges with load shedding.”
Zambia’s power utility is only managing four hours of electricity supply per day, blaming this on low water levels for electricity generation at the Kariba dam.
Moyo added that Grid Africa’s expansion across the region underscores the renewable energy solutions company’s commitment to providing reliable energy solutions across the region.
He said Grid Africa was dedicated to leading the charge in renewable energy development and “ensuring that businesses can thrive despite the shifting energy landscape in South Africa” while enabling peak shaving, under which energy users can avoid peak charges on the national electrical grid.
Hope Tshepo Segone, CEO of Rifuwo Energy Partners, said Grid Africa aligned with their mission to drive a just transition towards a more sustainable future.
“We are excited to partner with an experienced and entrepreneurial team who have a proven track record in developing and maintaining hybrid projects in challenging environments such as Zimbabwe, Kenya, and Ivory Coast,” Segone said.
BUSINESS REPORT