Business
Africa Utility Week: Focus on great potential for wind & solar energy
Zacarias adds: “In some situations there are policy vacuums that make it impossible to attract investment – both internally and foreign direct investment. In the case of South Africa, the legislation is coming right but rather late as most innovative companies who pioneered in the renewable energy field have actually given up or burnt their fingers.”
“In South Africa there have been challenges in the rebate schemes that were introduced by the South African government with the participation of the public utility company. Some of the surviving pioneering companies have since immigrated to less legislated countries to try and set up businesses there.”
Incentive structures
Incentive structures are often not viable in the long term, making investment in renewable energy less attractive for investors. This can include anything from government subsidized solar heating systems – (South Africa) to property tax reductions or waivers where households have made efforts to switch to renewable energy sources as is the case in some states in America.
“In Africa the incentives are normally driven by multi-lateral funding rather than business viability or national government institutions’ support schemes that are based on the national fiscus,” says Zacarias who will specifically address “Policy mechanisms governing renewable energy” at African Utility Week.
“This tends to complicate the ownership and buy-in as these incentives are drawn upon as long as they are made available. But when the external support mechanism is withdrawn, the project dies.”
Zacarias believes it is imperative for government and industry leaders to attend high-level meetings like COP17 and African Utility Week. “The more government leaders are exposed to renewable energy and Energy Efficiency solutions, the higher the likelihood of uptake of similar propositions that may be advanced by technocrats in their own countries,” says Zacarias.
African Utility Week is perfectly poised to help governments; business and end-users meet and find solutions to the challenges facing all stakeholders in the renewable energy fields. Speakers include experts from around the globe who bring broader insights in to how Africa’s challenges can be addressed.
