A lack of adequate funding and planning, and procrastination by utilities to adopt new business models are some of the factors hindering the growth of the renewables market in Africa.
ESI Africa spoke with Romain Py, head of transactions at AIIM, at African Utility Week 2018 to understand how renewable energy projects can secure funding.
He said the unavailability of local long-term debt in majority of African economies needs to be addressed if the continent is to record an increase in its renewables portfolio.
Responding to a question regarding how the delay in signing of bids 1, 2 and 3 of South Africa's REIPPP programme would impact the country's renewable energy market, Py gave credit to the South African government and parties involved for such developments.
He said the signing of the REIPPP is "a...nice step and we hope it continues going forward. The project has put South Africa on the map for renewables."
Some of the questions answered during the interview held at the African Utility Week, held in Cape Town in mid-May include:
- What are some of the risks associated with investing in renewable energy projects in Africa?
- How can investors in the private sector address risks associated with investing in Africa's renewables market?
- What are investors looking for in a project?