SAPVIA welcomes R2bn electricity transmission expansion facility
Industry organisation the South African Photovoltaic Industry Association (SAPVIA) says the announcement of a R2-billion Credit Guarantee Vehicle specifically for the expansion of South Africa’s electricity transmission infrastructure is a pivotal step in translating energy policy into financial reality.
“[Finance Minister Enoch Godongwana's] announcement is a direct answer to the industry’s most critical request. The commitment of R2-billion to a Credit Guarantee Vehicle for transmission expansion is precisely the kind of innovative, blended finance mechanism we called for,” SAPVIA technical and policy manager Sim Khuluse says in response to the Medium-Term Budget Policy Statement presented in Parliament on November 12.
“It enables public-private partnerships, which derisk private investment without State guarantees, which will directly target the single largest bottleneck to connecting new capacity,” he says.
This measure is essential to support the ambition of the Integrated Resource Plan 2025.
Additionally, Godongwana's acknowledgement of more than 2 220 MW of solar, wind and battery projects in development reinforces the momentum in the private generation sector. The structural reforms in energy are now key to lifting the nation’s growth rate, Khuluse says.
“This is a blueprint for action. By establishing a clear funding pathway for the grid, the Minister has provided the stability and financial clarity required for private capital to flow at the speed and scale needed to secure South Africa’s energy future,” he says.
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