- As part of the Copenhagen accord, the international community have agreed to invest approximately USD 30 Billion in developing countries between 2010 and 2012 with a target of USD 100 Billion every year after 2020.
- Besides the immense impact on the environment and clean energy capacity provision for our continent, Africans need to harness the boost that such investment provides the economy.
- Several governments in Africa have already made a conscious effort to ‘sweeten the deal’ for potential IPPs in an effort to accelerate delivery and realise measurable results.
- Private companies and Independent Power Producers (IPPs) are being invited by various governments world wide to partner in addressing the challenges in energy and global warming.
- Governments are providing IPPs with 15 – 20 Year Power Purchase Agreements, allowing for long-term opportunity, security and stability.
- Private investors and financial institutions recognise the potential that this market has to offer which provides sufficient project capitalisation.
- The abovementioned highlights have addressed many of the barriers to entry that were previously prohibiting IPP’s from entering the market:
Former barriers to entry:
- Feed-In Tariffs committed by government did not provide viable returns for potential investors.
- There were little or no subsidies / grants or incentives to supplement the low tariffs.
- High start-up costs inherent to alternative energy projects
High Demand + Favorable Conditions + Adequate Funding = Good Business
Climate change is one of our greatest environmental, social and economic threats. Observations show in-creases in global average air and ocean temperatures, widespread melting of snow and ice, and rising global mean sea level.
It is very likely that most of the warming can be attributed to the emissions of greenhouse gases by human activities.
Extreme weather events, including heat waves, droughts and floods, are expected to become more frequent and intense.
