Access to reliable and affordable energy is a pre-condition for addressing a broad range of challenges, including access to healthcare, access to education, food security, economic growth and job creation. Renewable energy technologies offer cost-effective and sustainable solutions. We invested in 435 MW of renewable energy in South Africa and 37 MW in Namibia in 2018.

Since 2012, an estimated 984 900 equivalent homes have received renewable power from Standard Bank financed projects in South Africa.

Standard Bank provided finance for six green energy projects in South Africa in 2018:

• Standard Bank was the mandated lead arranger, underwriter and hedge provider for the 33 MW Wesley-Ciskei wind project facility in the Eastern Cape. The project is run by the Riverbank Wind Power consortium, comprising EDF Renewables, Telagystix, Uncedo Lwethu Winds of Change, a group of black small-scale farmers with a 5% shareholding, and Riverbank Winds of Change BEE company, which benefits the local communities living within 50 km of the project, with a 12.5% shareholding. The project secured a 20-year power purchase agreement with Eskom under Round 4 of South Africa’s REIPPP, in April 2018. Construction will begin in December 2019 and production in June 2021.

In Namibia, Standard Bank partnered with Proparco, a French development finance institution, to develop the funding structure for the 37 MW Mariental solar photovoltaic plant. Stanbic Namibia was the co-mandated lead arranger and underwriter with Proparco. The plant is the first large-scale independent power producer project in Namibia, and one of the largest photovoltaic plants in Africa outside South Africa. It will increase Namibia’s generation capacity by 5%, generating 120 000 MW hours per year for over 25 years, and avoid emission of 33 000 metric tonnes of CO₂ equivalent every year. It will also reduce Namibia’s dependence of regional power imports and contribute towards Namibia’s long-term vision to be a self-sufficient solar power generator. Standard Bank’s strong in-country balance sheet enabled Proparco to denominate and assume credit risk in local currency, significantly reducing the quantum of risk. Reduced risk costs, together with competitive terms secured under the long-term electricity sale agreement, ensure consumers will pay less for their electricity per kilowatt hour, compared to current Namibian rates. The innovative use of local currency lending also has the potential to deepen African capital markets by developing new mechanisms to use African savings and capital to drive African growth.