News

CWEIC strategic partner British International Investment along with GuarantCo, a part of the Private Infrastructure Development Group (PIDG) aims to unlock USD$500 million of new renewable power development in South Africa through a $100 million deal with local energy trading company Etana Energy.

Both GuarantCo and BII will provide $50 million of default guarantee finance for Etana in South Africa’s largest ‘energy wheeling framework’ transaction. This new deal aims to unlock new renewable energy capacity by giving independent power producers (IPPs) with revenue certainty to enter the market. It is estimated that this $100 million in guarantee financing can lead to an estimated of $500 million worth of new energy projects, underlining the UK’s support for South Africa’s Just Energy Transition Partnership (JETP).

Recent regulatory changes in South Africa have opened up the opportunity for private power producers to sell electricity to business customers, and companies like Etana are looking to accelerate this opportunity, expanding the addressable market by buying renewable energy from private generators and then selling that output to a portfolio of commercial customers by “wheeling” the electricity across the existing transmission network.

For more information please access: https://www.bii.co.uk/en/news-insight/news/guarantco-and-british-international-investment-partner-to-unlock-us500-million-of-new-renewable-power-for-south-africa-with-landmark-100-million-etana-energy-deal/