Investors

Renewable energy investments can offer significant returns on investment, a shelter from the volatility of fuel prices, and peace of mind with independent power purchase agreements (PPA's) providing reliable income streams for years to come.

They are also environmentally and socially sustainable investments, helping to reduce our reliance on fossil fuels and provide jobs where they are needed. Returns on investment are steadily improving as technologies become more mainstream and fossil fuel prices become increasingly expensive and volatile. The appropriate technology for a project depends on the proposed location, availability of natural and human resources, distance to grid integration point, regulatory conditions, etc. South Africa is currently awaiting the release of ESKOM's second Integrated Resource Plan (IRP2) to approve PPA's and Independent Power Producers (IPP) in order to begin implementation of large renewable energy projects. Projects that are being considered for the Southern African region are:

Concentrated Solar Thermal Plants

These carry high internal rates of return (IRR) and simple payback periods of as little as 5 years, depending on financing and the PPA signed. This is an extremely viable solution for Southern African energy needs and makes up a significant portion of ESKOM's REFIT and IRP's target energy profile. This technology has been in use for nearly three decades in the United States, and is now gaining popularity in international markets. Implementing thermal storage systems using a heat transfer fluid (HTF) or molten salt can increase capacity factors substantially.

Solar PV Farms

These investments require little maintenance or technical support, provide powerful returns when situated in areas of high solar irradiation, and can be placed in a variety of locations. Solar PV can be mounted on urban rooftops or parking lots, placed in rural off-grid locations, or integrated into residential development power grids, or even built-in to structures (BIPV), adding additional aesthetic and/or functional value. Economies of scale give larger projects shorter payback periods and higher returns to offset initial capital costs. These can provide large savings or income streams once PPA's are signed. Tracking systems can reduce the land area required for a PV farm and increase energy yield by as much as 45%.

Wind Farms

Wind power provides one of the cheapest forms of renewable energy available and costs are steadily declining, costing less than a fifth than it did in the 1980's. Proven and improving technology is driving costs per kWh to near parity with coal and natural gas, with the added benefit of the revenue generated from Renewable Energy Certificate (REC) sales. These REC sales can provide a significant portion of a project's revenue.