South Africa Needs Investments in Renewable Energy – RMB
- RMB estimates R500 billion and more for renewables investment.
- The cost of the energy shift might reach R1.2 trillion.
According to estimates by Pranisha Sahadeo, senior transactor for Infrastructure Sector Solutions at Rand Merchant Bank (RMB), South Africa requires investments worth over R500 billion to accelerate renewable energy developments.
She stated last week that this figure would rise further after considering Eskom’s expenditures of increasing plant maintenance and importing surplus electricity from South Africa’s neighbours.
The cost of the energy shift might reach R1.2 trillion, according to Matthew Mflathelwa, general manager for strategy and planning at Eskom, who made this revelation last month. About R990 billion of that amount, according to Mflathelwa, would be used for energy transition plan generation, and R330 billion would comply with air quality regulations.
Eskom, according to Mflathelwa, is still burdened with at least R400 billion in debt. Therefore it will not be able to cover the cost of this energy shift.
The bank stated that South African financial institutions could use the funds it gathered from various sources to invest in a desirable, long-term stable asset class and that they supported the need for a just energy transition to a renewables-based economy.