Standard Bank Group Limited · JSE:SBK
Standard Bank — Avior Renewable Energy Investor Engagement (October 2024)
25 slides from Standard Bank's conference presentation, October 2024
Slide 1: An Overview of the South African Power Sector
AN OVERVIEW OF THE SOUTH AFRICAN POWER SECTOR October 2024 Presented by Rentia Van Tonder
Slide 2: Contents
CONTENTS 01 Standard Bank 02 SA Power Market Overview 03 SA Market Size and Drivers 04 SA Market Outlook 05 Themes and Opportunities 06 Africa energy overview / Page 2
Slide 3: Standard Bank
AVIOR Discovering growth
Slide 4: Climate Policy Overview
CLIMATE POLICY OVERVIEW Standard Bank is committed to driving Africa’s growth by balancing the urgent need for energy security with a responsible transition to a low-carbon future. Through its phased reduction of fossil fuel financing and strong support for renewable energy Climate Policy Goals ✓ St
Slide 5: Funding the Just Energy Transition Is a Key Focus
FUNDING THE JUST ENERGY TRANSITION IS A KEY FOCUS Unrivalled Sector Credentials with a Broad Base of Leading Clients Market Participation Standard Bank has executed the most innovative transactions across the financing, investment and hedging spectrum, including some of the largest public and privat
Slide 6: SA Power Market Overview
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Slide 7: SA Power Market Overview
SA POWER MARKET OVERVIEW SA power market is the largest and fastest growing in Africa with demand at c. 239 TWh per year and the 20th largest globally in terms of demand Department of Electricity and Energy 1 Generation Regulation and Minister in the Presidency responsible for Electricity ■ The ongo
Slide 8: Evolution of the South African Energy Market
EVOLUTION OF THE SOUTH AFRICAN ENERGY MARKET The development of RE in South Africa has increased generation capacity and reduced unserved demand, as well as decarbonizing electricity production Route to Market for RE Projects Market Challenges Power Pools 1 Grid Availability Bilateral Power Corporat
Slide 9: SA Market Size and Drivers
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Slide 10: Size of South Africa's Renewable Energy Market
SIZE OF SOUTH AFRICA’S RENEWABLE ENERGY MARKET Total Market Size: The large-scale renewable energy, energy storage, and component manufacturing market is projected to reach ZAR468bn by 2030 (from 2024)c.ZAR78 bn annually Key Segments` Key Differences Between the Segments` Private Procurement Public
Slide 11: Key Developments and Players in the Market
KEY DEVELOPMENTS AND PLAYERS IN THE MARKET Public Private ■ REIPPPP & BESS has been a cornerstone of South Africa's strategy to diversify its energy mix, attract investment in renewable energy, and reduce reliance on coal-fired power (141 ■ Since 2021 the South African Government has been amending S
Slide 12: SA Market Outlook
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Slide 13: Update: Market Outlook
UPDATE: MARKET OUTLOOK Key Themes in the SA Power Market Cost of Transmission ▪ The NTCSA started trading on the 1st of July 2024. The Electricity independent state-owned company owns the transmission licence for the national grid and is tasked with providing fair and ▪ Eskom’s revenue application f
Slide 14: Demand Considerations: Industrial vs Residential
DEMAND CONSIDERATIONS: INDUSTRIAL VS RESIDENTIAL Industrial Demand Residential Demand Energy Security Self-Sufficiency and Cost Control ■ Large industrial power users, particularly in energy-intensive sectors like mining and ■ For residential consumers, renewable energy demand has been heavily drive
Slide 15: Themes and Opportunities
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Slide 16: SA Market Themes and Opportunities (1/2)
SA MARKET THEMES AND OPPORTUNITIES (1/2) Theme Opportunity South Africa’s power market is undergoing significant liberalization, transitioning from a monopoly to competitive market, with the unbundling of generation, transmission, and distribution Market ✓ IPPs will continue to play a crucial role i
Slide 17: Themes and Opportunities (2/2)
THEMES AND OPPORTUNITIES (2/2) Theme Opportunity The EV market in South Africa is still nascent, with limited EV adoption and charging infrastructure in place. The government and private sector are slowly beginning to focus on expanding this space, but more investment is needed to accelerate growth
Slide 18: Africa Overview, Snapshot
06 Africa overview, snapshot
Slide 19: African Energy Overview
AFRICAN ENERGY OVERVIEW /01 POWER SECTOR STATUS /02 INVESTMENT REQUIREMENTS IN AFRICA ■ Africa has a growing energy need. The continent’s median age is 20 years and ■ Achieving Africa’s energy- and climate-related goals by 2030 will require annual average GDP per capita is just over 25% of the globa
Slide 20: Opportunities for Investment in Africa
OPPORTUNITIES FOR INVESTMENT IN AFRICA Energy investment in Africa largely mirrors the availability of local natural resources Renewable sources of power 2022 2050 Upstream production of hydrocarbons Major Minor Wind Solar Gas ■ Countries such as Egypt, Morocco, South Africa, Senegal and Kenya play
Slide 21: Case Studies & Tombstones
07 Case studies & Tombstones
Slide 22: Power Credentials Across Africa (1/2)
POWER CREDENTIALS ACROSS AFRICA (1/2) Ummbila Emoyeni Zimbabwe Power Doornhoek Solar 155MW Company HYDRA Solar 2023 120MW Amount Undisclosed Kenya 2023 2024 ZAR2 000m Equity 2023 2024 ZAR5.8 billion 2023 Equity Finance Facility Finance Facility USD50 million ZAR1,8 billion South Africa ZAR 6,1bn Sol
Slide 23: Power Credentials Across Africa (2/2)
POWER CREDENTIALS ACROSS AFRICA (2/2) ACWA Power Green IIBERAFRICA Power ENGIE Global Developments & Starsight Power Utility Ltd Eskom Holdings SOC Ltd Gulf Power STANLIB Infrastructure Genser Energy Ghana Limited Energy Africa (Pty) Ltd Kenya Abengoa Nigeria South Africa Kenya Private Equity Fund 2
Slide 24: Scatec Kenhardt Project – RMIPP
SCATEC KENHARDT PROJECT – RMIPP 540MW SOLAR PV & 1,1GWH OF BATTERY ENERGY STORAGE A Standard Bank funded project – sole MLA R15bn Constructed and commissioned within 15 months / Page 24
Slide 25: Thank You
THANK THANKYOU YOU
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