Enabling Renewable Energy in South Africa Assessing the Renewable Energy IPP Procurement Programme

Transcription

1 Enabling Renewable Energy in South Africa Assessing the Renewable Energy IPP Procurement Programme WWF RE Finance Report Launch IDC Offices, Sandton 29 August 2014

2 Disclaimer and confidentiality This document is not, nor is it intended to be, advice as defined and/or contemplated in Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting, actuarial or other professional advice ( advice ). Arista Capital Advisors (Pty) Ltd ( Arista Capital Advisors ), their agents and affiliates, are dealing with you exclusively on the basis that you have sufficient knowledge, experience and/or professional financial, tax, legal and other advice to undertake your own assessment of the information. The views in this document are those of Arista Capital Advisors and are subject to change, and Arista Capital Advisors has no obligation to update its views or the information in this document. This document does not aim to notify you of any possible risks, direct or indirect, in undertaking a transaction and counterparties should ensure that they fully understand and obtain professional advice in respect of the terms of the transaction, including the relevant risk factors and any legal, tax and accounting consideration applicable to them, prior to transacting. The information contained in this publication has been obtained from sources that Arista Capital Advisors believes are reliable but we do not represent or warrant that it is accurate or complete. The information may be based on assumptions or market conditions and my change without notice. Market fluctuations and changes in exchange rates may have an effect on the value or price of investments. Past performance is not a guide to future investment performance. This document is confidential and the recipient may not distribute it in whole or in part to other persons without prior written consent of Arista Capital Advisors. Distribution of this information outside of South Africa may be restricted by law and persons who come into possession of this document should seek advice on and observe any restrictions. Neither Arista Capital Advisors nor any of its affiliates or agents accepts any liability whatsoever for any direct, indirect or consequential damages or loss arising from any use of or reliance on this documentation or its contents. No proposal put forward in this document is intended to be binding upon Arista Capital Advisors or any of its affiliates or agents whether by way of agreement, representation or otherwise. Arista Capital Advisors will not be obliged to carry out any proposals or fulfill any terms mentioned herein. All terms hereby proposed are subject to, among other things, obtaining the necessary mandate appointment for Arista Capital Advisors, completion of due diligence as required and execution of the documentation. Arista Capital Advisors is not a licensed financial services provider nor does it purport to be. Arista Capital Advisors is not licensed by the Financial Services Board and the recipient of this document should consult a licensed financial services provider with regard to advice and/or investment decisions. 2

3 Introduction

4 Introduction Background to the Report Introduction An assessment of key successes, challenges, and developments Recommendations for improvements where applicable Objectives Generate debate and constructive dialogue between stakeholders Promote sustainability of RE development and financing Consider future of REIPPPP in face of uncertainty Structure Non-financial aspects: process and procurement policy Financial aspects: financing landscapes and key funding themes Sources Discussions with major stakeholders: Eskom, financiers (banks, DFIs, PE funds), government entities, developers, technology companies, contractors, advisors Publicly available research and information 4

5 Section 1 Non-financial aspects of the Programme

6 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development. 6

7 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development. 7

8 Section 1: Non-financial aspects of the Programme Tariff (R/kWh) Theme #1: Price discovery process Round 1 undersubscribed Tariffs bid at or just below price caps premium to fair market prices in Round 1 Necessary for investor confidence/incentive, but increased risk of retroactive tariff setting Round 2 oversubscribed Tariffs declined 22% and 40% for wind and solar PV respectively Round 3 & 4: tariff caps removed for wind and solar PV Market equilibrium reached? Evolution of REFIT and REIPPPP tariffs 1,2 R4.00 R3.50 R3.00 R2.50 R2.00 R1.50 R1.00 R0.50 REFIT REIPPPP REFIT 2009 REFIT 2011 Round 1 Round 2 Round 3 Notes: (1) Due to changes in tariff structure, CSP tariff comparison between Round 2 and Round 3 are not directly comparable (2) Prices are averaged and fully-indexed based on April 2011 for comparison purposes Wind Solar PV Solar CSP Cap: Wind Cap: Solar PV & CSP Source: DOE Presentations 8

9 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development. 9

10 Section 1: Non-financial aspects of the Programme Success rate Theme #2: Financial burden on the private sector Significant funds invested at risk for bid submission to be carried by developers Considerable capital deployed which is not converted into RE generation Increased competition and downward pressure on tariffs deterioration of risk/return profile Uneven playing field in respect of access to capital (bid costs as % of capital available) RFP in Round 4 reduces time and cost requirements of bids (e.g. returning compliant bidders ) Evolution of bidder success rates Estimates of development costs for unsuccessful projects 60% 40% 20% 0% # Bids: 52.8% 24.1% 18.3% Round 1 Round 2 Round Assumptions: Development cost per bid R2.5 bn R2.0 bn R1.5 bn R1.0 bn R0.5 bn R10m / bid R20m / bid R30m / bid Total development costs for unsuccessful bids: R4.8bn R3.2bn R1.6bn # Successful: R0.0 bn Round 1 Round 2 Round 3 Source: DOE Presentations, author calculations 10 10

11 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development

12 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development

13 Section 1: Non-financial aspects of the Programme Theme #4: Grid connection challenges Eskom required to deliver reliable cost and timing estimates at bid, but can only commence approval process at preferred bidder stage Significant resource demands on Eskom Grid connection delays beginning to emerge Disconnect between IPP budgeting requirements and Eskom s planning needs Conversion rate of Eskom Cost Estimate Letters to Preferred Bidder Status IPP Project 1 IPP Project 2 IPP Project 3 IPP Project n???? Eskom?????? > % 10% 8% 6% 4% 2% 0 Round 1 Round 2 Round 3 0% IPPs need date-certain connection with as close to fixed price as possible Eskom needs visibility on total MW actually fed onto the grid, when and where Eskom CELs Conversion rate (RHS) Successful projects Source: Eskom presentation 13 13

14 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development

15 Section 1: Non-financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Price discovery process Round 1 bid tariffs received at or just below caps with no true price competition. 2 Financial burden on private sector Time-consuming and costly process with limited chance of success deteriorating risk/return profile. 3 Ambitious pace of development Ambitious timelines for nascent RE market with limited resource capacity. 4 Grid connection challenges Time and cost inefficiencies for both Eskom and RE developers, leading to project delays in some instances. 5 6 Standardisation of PPA terms Local content requirements Setting standardised PPA terms limits ability to capitalise on market efficiencies. Local content remains an evolving policy which is hotly debated trade-off between cost and economic development

16 Section 1: Non-financial aspects of the Programme % Local content Theme #6: Local content requirements Minimum thresholds increased from 25% to 40%+ Prescriptive criteria and high penalties adds to bid compliance costs Government working to optimise policy Reduce potential for circumvention; identified key components for local manufacture Arguments for local content requirements Significant socio-economic benefits Lack of local manufacturing support tantamount to subsidisation of foreign imports Arguments against local content requirements Higher tariffs bid Local components not cost competitive with foreignsourced components Increased costs not justified by RE jobs created Local content: minimum requirements and targets versus actual content achieved Round 1 Round 2 Round 3 70% 60% 50% 40% 30% 20% 10% 0% 70% 60% 50% 40% 30% 20% 10% 0% Desired targets Minimum compliance threshold PV CSP Wind PV CSP Wind PV CSP Wind Source: DOE presentations 16 16

17 Section 2 Financial aspects of the Programme

18 Section 2: Financial aspects of the Programme Debt capital committed (R bn) Overview Major finance stakeholders (1/2) ~R120 billion of capital committed across three rounds Estimated split ~R83 billion debt and ~R35 billion equity Majority of debt (>75%) taken up by commercial banks, followed by local DFIs International DFIs becoming more active Major debt providers Large portion of IDC and DBSA debt used to finance equity investments (e.g. BEE shareholders) Round 3 Round 2 Round Nedbank RMB Standard Bank Absa Investec IDC* DBSA* No. of projects: Note: Source: Round 3 funding commitments likely to increase due to FX movements from bid submission Discussions with debt providers 18 18

19 Section 2: Financial aspects of the Programme Typical terms in South Africa s RE project finance market Typical project finance terms and covenants have been incorporated In some cases, more favourable terms than other project finance transactions (e.g. mining and resources) given lower market/commodity risk and financial strength of off-taker (RSA) Key terms and financial covenants Typical ranges Minimum Senior Debt Cover Ratio 1.25x 1.40x Minimum Senior Loan Life Cover Ratio 1.30x 1.45x Equity Lock-Up Cover Ratio 1.10x 1.20x Default Cover Ratio / Trigger Event 1.05x 1.15x Gearing 1 60% 80% Tenor 1 Grace Period Availability Period (Drawdown) 1,2 All-in Margin 1 FX Hedging Interest Rate Hedging years Potentially up to 1 year Wind / PV: months CSP: months bps (incl. liquidity premium of ~120 bps and statutory costs of ~30 bps) 90% 100% during construction 90% 100% during construction 40% 70% during operation Notes: (1) Dependent on technology and project risk profile; (2) Dependent on construction schedule and longstop dates 19 19

20 Section 2: Financial aspects of the Programme Estimated equity invested (R bn) Overview Major finance stakeholders (2/2) Average equity shareholding split ~50:50 between international and local shareholders Foreign investors dominated by leading RE developers Top 10 equity investors contribute ~50% of total equity invested Major equity investors Estimated equity investments based on estimated capital cost per project, debt:equity splits, and shareholdings as disclosed in presentations to NERSA No. of projects: Local investors Foreign investors Source: NERSA presentations and publicly available information, author estimates 20 20

21 Section 2: Financial aspects of the Programme Overview of financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

22 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

23 Section 2: Financial aspects of the Programme USDZAR USDZAR Trading Range (cents) Trading Range (cents) 15 Year Swap Rate 15 Year Swap Rate Trading Range (bps) Trading Range (cents) Theme #1: Market movements at financial close Round 1 R9.00 R8.80 R8.60 Chart 1: FX Rates and Trading Ranges Ratings Downgrade % 7.3% 7.1% Chart 2: Swap Rates and Trading Ranges Ratings Downgrade Offshore demand R8.40 R % 6.7% Prehedging? 10 5 R Sep Oct Nov Dec % 01-Sep Oct Nov Dec-12 0 Round 2 Chart 3: FX Rates and Trading Ranges Chart 4: Swap Rates and Trading Ranges R10.50 R10.00 R9.50 Fed tapering announced % 8.50% 8.00% 7.50% Fed tapering announced R % 10 R Apr May Jun Jul-13 Range (cents) DOE Close Financial Close USDZAR 6.50% 0 01-Apr May Jun Jul-13 Range (bps, RHS) DOE Close Financial Close 15 Year Swap Rate Source: Bloomberg 23 23

24 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

25 Section 2: Financial aspects of the Programme Tariff adj. required Theme #2: FX Risk RE is import intensive ZAR volatility presents significant risk to projects and government Government shoulders FX risk from bid submission to financial close ZAR depreciated 8.8% and 11.8% in R1 and R2 Potential cost increase of R4.0 bn R6.0bn over life of projects (R1 and R2) 15% 10% 5% 0% -5% -10% R16 R14 R12 R10 R8 ZAR Volatility ZAR monthly % change vs. USD and EUR ZAR daily closing rate vs. USD and EUR R USD/ZAR EUR/ZAR Impact of ZAR movements Illustrative example of tariff adjustment required for change in FX rates 15% High FX exposure 10% 9.1% project (60%) Low FX 5% 4.7% 4.7% exposure 2.4% project (30%) 0% 0% 5% 10% 15% 20% 25% ZAR Depreciation vs USD Potential cost to Eskom of tariff adjustments Round 1 Round 2 Total Capacity (MW) 1,416 1,030 Avg. Capacity Factor (%) 30% 30% Annual Generation (GWh) 3,712 2,687 Average Premium (ZAR per kwh) (1) Annual Premium (ZARm) (2) Total Premium over PPA Life (ZARm) 10,062 8,927 NPV of 8.5% (ZARm) (3) 4,108 3,645 Source: Bloomberg, author calculations Notes: (1) Assumes fully escalated tariffs in 2011 figures (2) Annual Premium assumes two years' inflation escalation from 2011-indexed values to operations

26 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

27 Section 2: Financial aspects of the Programme Impact on Equity IRR (bps) 15 Year Swap Rate Impact on Equity IRR (bps) Tariff adj. required Theme #3: Interest rate risk Interest rate and swap movements can have an equally big impact as FX movements Yet no cure provided by DOE CPI-linked debt could potentially reduce sensitivity of IRRs to inflation and interest rates 9.5% 8.5% 7.5% Movement in swap rates: Round 3 bid submission to date 6.5% Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul Bid preparation -138 ~200bps Illustrative example of impact on equity IRR of increasing rates Change in interest rates (bps) Illustrative example of tariff adjustment required for change in interest rates to maintain equity IRRs 8% 6% 4% 2% 2.7% 5.3% 7.8% 0% Change in interest rates (bps) Illustrative example of impact on equity IRR of changing inflation Change in inflation -1.5% -1.0% -0.5% 0.0% +0.5% +1.0% +1.5% 5.0% 3.0% 1.0% -1.0% -3.0% -5.0% Fully-indexed tariff, no CPI debt Fully-indexed tariff, 80% CPI debt Partially-indexed tariff (20%) Source: Bloomberg, author calculations 27 27

28 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

29 Section 2: Financial aspects of the Programme Theme #4: Diversification of funding sources Debt financing currently provided mainly by commercial banks Risk profile of projects and associated cost of funding therefore shaped by banks Key limiting factor to lower tariffs is currently cost of debt Need to diversify and increase competition amongst funding pool Consider alternative funding sources: Corporate financing (being increasingly used) Individual project bonds (e.g. Soitec) Green bonds (e.g. Nedbank; IDC) Earlier involvement of institutional investors (price in benefit of syndication) ECA finance (used but in a fairly limited capacity) Cross-currency swaps / foreign-denominated debt (expensive given current ZAR levels) Bridge financing for construction phase (may lower long-term cost of debt) Asset securitisation structures of multiple projects Listed vehicles / funds (increase access to institutional investors) Crowd funding platforms, tax equity, REITs and MLPs (used in international markets) 29 29

30 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

31 Section 2: Financial aspects of the Programme Theme #5: BBBEE financing vehicles Key successes Broad-based involvement Rural development and skills transfer Significant dividend flow to communities Potential for dedicated BEE RE funds? Key challenges Limited BEE financing options domain of DFIs Upward pressure on tariffs to meet vesting requirements Typical BBBEE Financing Structure Community Trust BEE investors Community HoldCo BEE Funders BEE HoldCo Strategic Equity Partners Developer Legend: Project Company BEE investors / beneficiaries BEE holding companies BEE funders Other equity investors Ordinary share investment Preference share financing 31 31

32 Section 2: Financial aspects of the Programme Overview of non-financial themes Non-financial themes Summary 1 Market movements at financial close Significant hedging activity in narrow windows has a pronounced effect on FX and swap markets. 2 Foreign exchange risk FX exposure presents significant risk to both government and projects. 3 Interest rate risk Volatility of swap market places projects at risk of failing to close in the absence of tariff adjustments. 4 Diversification of funding sources Alternative funding sources / structures needed to reduce cost of debt and therefore tariffs bid. 5 BBBEE financing vehicles Limited options for BBBEE financing have put upward pressure on tariffs. 6 Refinancing restrictions Easing refinancing restrictions over time may provide benefits to projects / developers and reduce tariffs

33 Section 2: Financial aspects of the Programme Theme #6: Refinancing restrictions Restrictions on refinancing for longer terms and/or increased quantum of debt Required to limit government s implicit liability in event of Eskom default Restrictions on sale of equity in project for first three years To avoid developers flipping projects No change in control for life of project Avoid risk of white elephants large projects with inexperienced or unqualified shareholders Restrictions should be eased over time to allow investors to recycle capital into new projects Significant capital tied up in projects, needed for future rounds and other infrastructure programmes Improved economics for projects New strategic investors may be able to improve plant performance and extend project life Some exceptions to restrictions have been made 33 33

34 Conclusion and outlook Conclusion and outlook REIPPPP has been very successful to date Scale and pace of procurement (from less than 10 MW to 4 GW procured in ~2 years) Coherent and well-constructed RFP boosted investor confidence Flagship PPP model for South Africa, and the rest of Africa Helping to alleviate Eskom s current power crisis while reducing national GHG emissions The South African RE market will continue to evolve and mature in the coming years A key focus will be the drive to reduce the cost of capital Reduced risk profiles of projects as investors become more familiar with REIPPPP Diversification and increased competition amongst funding sources Increased flexibility of REIPPPP, easing of RFP requirements and evolution of PPA terms Beyond REIPPPP, there is potential that South Africa may move towards establishing a partially privatised and liberalised energy market Subject of significant debate and unlikely to materialise in the near future REIPPPP has proven a positive step in the direction of encouraging more private sector participation in the generation of electricity in South Africa 34 34

35 END END THANK YOU Author and presenter: Pamela Papapetrou Director Arista Capital Advisors (Pty) Ltd 35 35