The global African hydrogen summit set for September aims to drive critical investments and financing into bankable green energy projects across Africa.
The International Energy Agency estimates that Africa will need to double its electricity generation capacity by 2040 to meet growing demand with more than 600 million people across Africa lacking access to electricity.
The continent has been identified as a prime source for renewable energy exports to regions seeking to reduce reliance on fossil fuels and meet net-zero targets.
Global African Hydrogen Summit head of marketing Roshan Jan-Mahomed says most development banks, bilateral aid, export credit agencies and development finance institutions have a clear mandate to facilitate the energy transition.
“Many of these institutions offer preferable terms to projects that help achieve net-zero targets. Additionally, numerous climate investment funds and venture capital funds are dedicated to green energy investments, including throughout the development stage,” he says.
The summit is held in conjunction with the government and endorsed by the Ministry of Mines and Energy and will take place from 3 to 5 September in Windhoek.
The Project Investment Roundtables will play a pivotal role in accelerating deal-making, from origination through to bankability to transaction to financial close in various sectors.
Jan-Mahomed says for the green energy project in Africa to be considered fully bankable, it must reach specific milestones or have a well-defined roadmap.
Investors, both equity and debt, will assess technical and commercial risk factors before committing financing. Energy transition projects present unique challenges compared to traditional fossil fuel-based projects, particularly in an African setting.
“While key technical risks include the scale up of technology, integration and interfaces, availability of supporting infrastructure and contracting strategy, commercial risk considerations include customer offtake, available market, pricing of energy transition products and sponsor support,” the head of marketing says.
Ahead of financial commitment, investors will also require an environmental and social impact assessment completed in line with national and international standards.
The Global African Hydrogen Summit call for bankable African green energy projects closed on 12 July, after which all projects will be reviewed by the summit’s investor board.
The 15-strong investor board, represented by organisations including Climate Fund Managers, Deutsche Investitions-und Entwicklungsgesellschaft and Rand Merchant Bank, will provide thorough assessment of each project based on strict submission criteria.
Developers and investors will then be matched to conduct the Project Investment Roundtable meetings at the summit where subsequent deal singings and announcements will be made.
– The Namibian is the official media partner for the Global African Hydrogen Summit.
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