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Old Mutual’s AIIM renewable projects can help end Eskom load-shedding

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AIIM is a part of Previous Mutual Various Investments and manages private-equity funds that spend money on African infrastructure. The agency, which has $2.4bn below administration, not too long ago upgraded its new challenge pipeline in South Africa from 2,000 to five,000MW, which it goals to implement within the subsequent three years. The pipeline can “vastly cut back the impression of load shedding,” Ntoi says.

The challenge pipeline, which AIIM has employed specialist groups to develop, will likely be made up of at the very least 100 completely different operations with common capability of 50MW or much less, Ntoi says. That sort of diversified portfolio will assist to resolve the intermittency of photo voltaic assets, he says.

Reasonably than serving to to fulfill peak demand, renewables may also have the ability to contribute to baseload. State-owned energy utility Eskom, he says, is at the moment utilizing vegetation designed to fulfill peak demand as baseload suppliers.

Releasing up “peakers”, to behave as meant, will give the grid extra stability. That course of may also cut back the necessity to use gasoline in South Africa’s energy combine, Ntoi says. “Renewables could make up the majority of baseload era. There will likely be a degree the place gasoline is just not wanted.”

AIIM says it has contributed to round 25% of the clear vitality provided to South Africa’s grid. Ntoi sees nice potential in wheeling, below which Eskom’s grid is used to move electrical energy from the purpose of era to the top consumer.

  • South Africa is a “large” potential marketplace for wheeling options, Ntoi says.
  • AIIM in Might closed the acquisition of majority stakes in three new solar energy vegetation totalling 30MW that can provide Concord mining operations within the Welkom space. Industrial operation is because of begin in March and April 2023.


Throughout Africa, Ntoi says, the largest constraint on scaling up renewable vitality is the lack of sufficiently giant nationwide grids. Covid-19 has added to the monetary pressures on nationwide utilities and weakened governments’ skill to help them. These pressures have been compounded by increased oil and gasoline costs.

AIIM has reacted with a deal with options for industrial and industrial customers. Ntoi calls it “a coverage choice and a mirrored image of actuality”. In international locations that lack intensive grids, AIIM plans to focus on mini grids, he provides.

In South Africa, specialists have argued that take-up of renewables may serve to weaken Eskom financially, as the brand new options will likely be utilized by industrial and prosperous particular person customers who pays their payments. Many poorer customers, together with some South African municipalities, can’t or won’t pay.

Ntoi doesn’t the impression on Eskom that method:

  • Eskom will nonetheless receives a commission for the transmission and distribution of electrical energy within the context of a nationwide producing shortfall, he says. “If something, it improves Eskom’s place.”
  • Nonetheless, plugging the holes in Eskom’s capability won’t be simple. The utility’s era capability could proceed to say no because the oldest coal vegetation are closed, which means new funding in Eskom will likely be wanted. “We aren’t dealing with a steady scenario.”

The underside line

Steady electrical energy for South Africa is getting nearer as renewable vitality good points traction.

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