Radebe commits to finding ways to finance energy infrastructure

The financing of energy infrastructure is becoming an uphill battle for emerging economies, especially given the impact of the trade stand-off between China and the United States. That’s according to Minister of Energy, Jeff Radebe, who told delegates at the annual African Utility Week in Cape Town last week that

while the current credit situation remained tight, government intended to find ways to increase financing for energy infrastructure. “Our objectives are to deliver improved energy security and to diversify our energy mix through regional integration, increasing access to modern energy carriers and reducing our greenhouse

gas emissions,” he said. Radebe acknowledged that over the past few years there had been enormous upward pressure on electricity tariffs as government had embarked upon an intensive capital investment cycle in the power sector. “To tackle this reality, in 2018 President Cyril Ramaphosa set a target to lure investments of $100bn by 2023, intended to stimulate economic growth, which has been falling far short of the 5.4% annual target set in our National Development Plan. Energy infrastructure projects are therefore regarded at the highest level of government as key to attracting investments into our country and growing the economy,” he said.

“Through the Renewable Energy Independent Power Producer (REIPP) programme, the Department of Energy has sent out strong signals  with regard to South Africa as an investment destination for energy infrastructure development. We have successfully implemented bidding rounds to which the response has been over R250 billion in investment to date.”