Winning bidders in the first round of South Africa’s renewable energy projects signed agreements with government on Monday. Standard Bank Group has taken an equity stake in four projects.
In addition, we’ve emerged as the leading investor, backing a total of 11 wind and solar projects approved by South Africa’s Department of Energy, and will also be underwriting R9.4-billion worth of debt.
Standard Bank Group is financing five out of the eight wind projects and six of the 18 solar projects and so will underwrite about a third of all project debt.
This represents a significant commitment from Standard Bank Group to the establishment of a renewable energy sector in South Africa.
We’re using our expertise in, amongst others, carbon trading credits, corporate bonding and guarantee facilities to further help our clients involved in the 11 projects.
Further bidding rounds are expected to take place roughly six months apart from 2013 onwards.
South Africa aims to secure a total of 17 800 megawatts of renewable energy or 42% of South Africa’s new generation capacity by 2030.
Various specialists within Standard Bank Group are already preparing for the close of the second bidding window and in supporting bidders’ preparation for the third round.
The second bidding window should close in the first quarter of 2013.
Standard Bank Group has already committed a total of R6.1-billion of debt out of a total R19-billion to preferred bidders on the second bidding window. The second programme is smaller than the first and will have a total of 19 projects. Standard Bank is supporting preferred bidders on five of these projects.