PMG 2 November 2011.

The South African Renewables Initiative (SARi) and the South African National Energy Research Institute (SANERI) made presentations to a joint-sitting of the Portfolio Committee on Science & Technology and the Portfolio Committee on Energy.

SARi presented its long-term financing model which had the objective to develop a critical mass of investment in renewable energy without imposing unacceptable incremental cost to the country. Its focus was on low cost loans and financial risk mitigation instruments, as well as on funding the gap through a combination of international grant and modest domestic contribution. Its funding strategy was to bring down the cost of capital for renewable energy; provide additional funding for the Renewable Energy Feed-In Tariff (REFIT) programme and create 40 000 to 54 000 jobs per year by 2020-2025. Other benefits would be enhanced energy security, industrial development opportunity, competitive exports and reducing carbon GHG emissions growth. The net domestic cost burden would be relatively small, with tax revenue from investments and associated labour income approaching fiscal neutrality over time. Strong domestic policy coordination and ongoing cooperation with National Treasury, Department of Trade & Industry and the Department of Energy was crucial for success of SARi. ..