Nedbank Group Limited has demonstrated its thirst for more renewable projects in the future as the Chief Executive Officer said they would be seeking to provide more funding for green projects. The aim of the bank is to double its lending to green energy projects in South Africa over the next two years, affirming its position as a market leader in funding renewable power projects.
“We would certainly have appetite for it to go higher if client demand is more than that,” Chief Executive Officer Mike Brown, said in an interview at Nedbank’s office last Friday.
The move comes after South Africa’s President Cyril Ramaphosa unshackled the private sector in a bid to end an energy crisis that has crippled the country for decades. The energy crisis has been ranked as one of the most limiting factors in Africa’s industrialized economy. Consequently, there is a great likelihood that there will be a surge in demand for funding renewable power projects. Moreover, the South African government scrapped a 100 megawatt limit on private power generation. therefore, companies were able to produce electricity without a license, meet their own needs, and sell to the grid
The state also doubled renewable-energy procurement to 5,200 megawatts under the so-called bid window six tenders. This purports to help the country in transition from a dependence on coal for more than 80% of its power, toward greener energy sources.
Nedbank – Eskom on View for Green Energy.
Moreover, most of the Authorities in South Africa are fixated on curbing the recurring blackouts and facilitating power utility in Eskom Holdings SOC Ltd. Eskom cut enough electricity to light up 4 million South African homes and this did not settle well for most South Africans
In light of these recent events, Nedbank has no doubt had its eye on cementing its position as a market leader in funding renewable projects. Further, the bank’s lending toward the government’s Renewable Independent Power Producer Program purports to boost electricity that is generated from private firms in South Africa. This may spike up to about 50 billion rands ($3 billion) in the “short-to-medium term” from 29 billion rands, said Chief Executive Officer Mike Brown.
There is no doubt that most of these efforts are geared towards conserving energy and relying on renewable energy sources for the country.
