Friday, 30 October

Dear <<First Name>>

As REPP’s investment manager we know as well as anyone how critical innovation is for scaling-up renewable energy investment. And so it was with great interest that I read the news this week that a new business model could be about to turn the energy market’s current single buyer model on its head in Zambia, crowding in new investors. 

Through the model, GreenCo will act as an intermediary offtaker and service provider, purchasing power from renewable IPPs and then selling it on to utilities and private sector offtakers and markets of the SAPP. GreenCo will mitigate the risk of purchaser default by securing alternative buyers or through short-term trading on the SAPP electricity markets, thus reducing the financial risk for investors that so often holds viable projects back.

If all goes well, GreenCo will help mobilise significant private sector investment in the renewable energy sector, representing an enormous step forward not just for Zambia but the region as a whole.

Cheers

Geoff Sinclair

Managing Director, Camco Clean Energy

West Africa

Gabon: FGIS signs contract with Asonha Energie to build 35MW hydro plant (Afrik21)
- The Gabonese Strategic Investment Fund (FGIS) has partnered with Meridiam to build the Kinguele Aval dam. 

Ghana: Rehabilitation works on the 160MW Kpong hydro plant have been completed (Afrik21)
- After 43 months of work by the Andritz Hydro company the station is now back online and is expected to supply 12% of Ghana's electricity.

Ghana: Electricity Company of Ghana to use drones to inspect network (ESI)
- Fifteen drones will be deployed in a variety of roles, including monitoring the network, conducting routine inspections and undertaking route mapping for new lines.

Ghana: Government encourages VRA to export power to save over US$500 million annually (My Joy Online)
- Take-or-pay agreements signed by the previous government are costing the country dearly due to nearly half of its electricity not being used.

Mali: 3.9MW/2.6MWh solar-plus-storage to be built at Nampala gold mine (PV-Magazine)
- Vivo energy will construct the facility, which is expected to reduce the cost of every kilowatt consumed by US$0.04.

East Africa

Ethiopia: DFC provides US$1.55 million grant for the technical development of the 50MW Tulu Moye geothermal project (Afrik21)
- Work is being carried out by a consortium consisting of Meridiam and Reykjavik Geothermal with the first phase of the project being carried out by KENGEN.

Southern Africa

Mozambique: Neoen launches construction of the 41MW Metoro solar power plant (Afrik21)
- The project has been financed by Proparco and the AFD with a 20-year PPA being signed with EDM.

South Africa: 140MW Nxuba wind farm completed (ESI)
- The wind farm now stands ready to feed electricity into the South African grid.

South Africa: Large cities will now be able to source their power from IPPs (Afrik21)
- The Department of Energy’s decision will enable large cities to become greener and reduce their dependence on Eskom.

Zambia: IFU and InfraCo provide US$1.5 million in funding to the Africa GreenCo Group (Africa GreenCo)
- This funding will help GreenCo establish itself as an intermediary renewable energy buyer/supplier and power services provider.

Africa - general

General: African governments are not doing enough to drive clean energy (PV-Magazine)
- COVID-19 related demand slumps and several countries' decisions to delay electricity bill payments are harming energy companies according to a new report.

Rest of World

Batteries: The issues with lithium-ion recycling and how to fix them (PV-Magazine)
- Design-for-recycling not high on manufacturers' list of priorities. A solid business case is needed to change this.

General: BNEF report ‘New Energy Outlook 2020’ indicates temperatures will rise by 3.3C by 2100 (ESI)
- The pandemic will remove 2.5 years’ worth of energy sector emissions, but sector emissions are predicted to only start falling from 2027 onwards.

Solar: It's now cheaper to build new solar than to continue operating coal plants (PV-Magazine)
- New analysis by Lazard shows that utility-scale solar and wind are the most affordable sources of electricity.

Solar: Wood Mackenzie expects 115GW of solar to be installed this year (PV-Magazine)
- Global solar demand may increase 5% from 2019 levels despite global lockdowns.

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