Asset manager provides R2,5-billion for 500 MW of solar and wind energy projects

March 20th, 2013, Published in Articles: Energize

South Africa’s energy generation capacity needs to grow by more than 40 000 MW over the next 20 years, twice as much as what is available today. Futuregrowth Asset Management believes that funding renewable energy projects by private sector capital plays a major role in meeting the urgent need for new generation capacity. Renewable energy projects can be constructed more quickly than new coal-fired plants, increasing the country’s energy capacity by nearly 18 GW, or 42% of new generation capacity according to targets in the Integrated Resource Plan. The asset manager has provided R2,5-billion in debt funding thereby offering investment opportunities in new solar and wind projects. To date 28 renewable energy projects totalling R45-billion have been financed by private institutions, and a further 19 projects worth R30-billion are available as future investment opportunities. It is estimated that local communities will own a minimum 2,5% stake in the projects which, combined with minimum local content and preferential procurement requirements, will support small enterprise development and job creation.

Contact Michele Usher, Futuregrowth Asset Management, Tel 021 659-5459, musher@futuregrowth.co.za

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