Henri Horn

Great @TransitionShow episode 189 on Financing Energy Transition in emerging markets, role of #RooftopSolar for Commercial&Industrial customers

#DistributedGeneration Projects are very profitable, payback in 2-5 years. But recent years saw very little progress in developing countries despite years of Multilateral Development Bank support. Financing is channeled through local banks, unprepared for DG as asset class and #DueDiligence causes delays and bureaucracy.
https://xenetwork.org/ets/episodes/episode-189-financing-the-transition/

[Episode #189] – Financing the Transition | The Energy Transition Show

Can we coordinate replacing fossil-fueled assets with clean, zero-carbon assets so that both systems remain functional and affordable during the transition?Why is it so much more expensive to finance clean energy projects than fossil fuel projects in emerging economies? And what can be done about it?

The Energy Transition Show
Jan 8, 2023 at 8:13pmWeb
Show threadHenri HornJan 8, 2023
The #EEP_Africa fund focuses on upstream financing for renewable energy entrepreneurs in #SubSaharanAfrica and has tried to address the same issues. Ironically, developers often say there is no financing, while financiers complain there are no bankable projects.
With 250+ projects funded since 2010, including #GigawattGlobal, #Mobisol, #Devergy, #OffGridElectric, ample information is available on awardees' track record for downstream financiers to support DD.
https://eepafrica.org/
EEP Africa - Clean Energy Financing

EEP Africa provides clean energy financing to early stage projects in Southern and East Africa.

EEP Africa
Show threadHenri HornJan 8, 2023

Unfortunately #EEP_Africa financing is limited to €1 million and there remains a 'valley of death' for companies to progress to MDB financing which typically starts at €50million, or commercial banks.

The blended finance #FinlandIFCclimateFund attempts to de-risk smaller RE projects in developing countries with a first-loss share of a few million.
https://um.fi/finland-ifc-blended-finance-for-climate-program

A few projects already completed, like #Kael & #Kahone utility scale solar plants in #Senegal https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=16849

Show threadHenri HornJan 9, 2023
Ep189 of @TransitionShow makes me even more worried about energy utilities in Sub-Saharan Africa. In 2016 only Seychelles and Uganda had #costReflectiveTariffs, most utilities can't even recover OPEX and lose money with every kWh they sell. Fuel price hikes exacerbate the problem.
If Commercial & Industrial captive solar projects take off 5x - 10x like @sethkl71 claims, utilities will lose these anchor customers, spiralling to bankruptcy.
Show threadHenri HornJan 12, 2023
@TransitionShow The unsustainability of African electrical utilities was covered by Economist in 2017.
The risk of #GridDefection is not reflected in official statistics. KenyaPLC said that 1 million grid-connected customers have bought no power at all.
If a connection to unreliable grid costs >2.000USD and a 10kW+10kWh PV+battery hybrid system <10.000USD, as residential customer I would prefer independence and choose the latter.
https://www.economist.com/middle-east-and-africa/2017/12/14/more-africans-have-electricity-but-they-are-using-less-of-it
More Africans have electricity, but they are using less of it

Power and the people

The Economist
Show threadHenri HornJan 22, 2023

In South Africa, the state owned utility #Eskom could rapidly become redundant if metropolitan municipalities decide to look for private sector alternatives, especially based on cheaper #renewables

https://www.dailymaverick.co.za/article/2023-01-19-dumped-metros-start-the-move-away-from-eskom-and-towards-independent-power-producers/?utm_source=top_reads_block&utm_campaign=maverick_news

ENERGY EMERGENCY: Dumped — metros start the move away from Eskom and towards independent power producers

Amid relentless blackouts, some leading metros across the country are moving forward with plans to cut loose from Eskom by bringing independent power on to the grid as quickly as possible. Here’s how three of South Africa’s major cities are progressing.

Daily Maverick
Show threadChris Nelder 🤘Nov 23
@henrihorn @TransitionShow A real concern. But as you'll be hearing in an upcoming miniseries, there are changes afoot in South Africa that will change that outlook for the better.