Africa is open for business and there are a number of opportunities in the energy space, Rentia van Tonder, Head: Renewable Energy, Power and Infrastructure at Standard Bank South Africa, has said.

Until now, the bulk of the investments have been in South Africa and Kenya, but according to van Tonder, key opportunities exist in countries like Tanzania for wind and solar projects, and for gas to power and hydro in Mozambique.

“Nigeria, Namibia and Ghana have capacity for gas, wind and solar projects. Solar projects could also find favour in Zambia, Zimbabwe, Botswana and Senegal while hydro power has potential in the Democratic Republic of Congo and Malawi,” she said.

“While there are some hurdles like the availability of primary power and government support, far more people and companies on the continent need power,” added Van Tonder.

Renewable energy projects financed by Standard Bank are currently producing more than 40% of the 1 760 Megawatts (MW) by Independent Power Producers, (IPP’s), under the Renewable Energy Independent Power Procurement Programme (REIPPP).

Standard Bank has provided finance to 14 active renewable energy projects delivering power to South Africa’s power grid, helping to alleviate a chronic energy shortage.

The Bank has also provided an additional financing for more renewable energy projects that are yet to come on stream, but which are anticipated to add a further 800MW of power to South Africa’s power generating capacity.

The total estimated renewable energy market in South Africa is currently worth more than R180bn, and is anticipated to reach over R300bn as a result of the new determination of an additional 6 300MW recently announced by the minister of Energy.

“Standard Bank believes the successes achieved in South Africa’s renewable programme can be replicated across Africa, where opportunities abound for solar, wind, hydro and gas projects, but where only 20% of people are connected to power grids,” said van Tonder.

“We remain committed to supporting and growing the power sector, not only in South Africa, but throughout the rest of the continent as well,” she said.

“However, it remains important to choose the right projects that demonstrated the greatest potential to add a sustainable, renewable energy source to that specific country’s grid, with the emphasis on long term partnerships,” she added.