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Developing innovative funding models for renewable energy

A look at developments in the South African renewable energy sector, and the pioneering funding models underpinning its success.

RMB continues to be at the forefront of innovation in delivering financing solutions in the energy sector, having benefitted 39 utility scale projects in South Africa – more than 2.7 gigawatts’ worth – representing a market share of close to 45%, far more than its closest competitor. 

RMB’s financing helped deliver the lowest tariff bid ever in South Africa

RMB’s inflation-linked debt product, used since the early rounds of the Renewable Energy Independent Power Producer Procurement (Reippp) programme, has become the financing instrument of choice in the renewable energy sector, while its equity funding solutions help unlock significant value for many shareholders in the sector and the facilitation of new local players. 

Daniel Zinman, senior infrastructure finance transactor at RMB, talks to Moneyweb editor Ryk van Niekerk about the development of innovative funding models for the renewable energy sector.

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With respect, the banks milked this thing at a cost of 5c/kWh to the SA public. The PPA are sovereign guaranteed. The technology is dead simple and all construction risk can be contracted through a EPC Turnkey contract. There is no risk!

Please ask RMB what a term sheet looks like. The rates and raising fees are patently absurd. A clever pension fund trustee would enter this market directly instead of buying overpriced funding packages to which a margin was added.

On big solar, PPA can be close to 45c depending on the project’s location relative to the transmission grid.

End of comments.

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