Green Economy Journal Issue 63

FINANCE
Our purpose
is to end the
climate crisis.
Why is interconnection across SAPP via strategic transmission
corridors so important?
Electrification is vital for economic development and for building
thriving communities. To quantify the potential economic benefits:
SAPP has identified eight high-priority transmission projects for RTIFF,
currently in the due diligence phase, which will bring estimated
economic benefits of $4.3-billion in NPV.
Please expand on the necessity of investing in transmission grids.
There is a deep need to mobilise blended finance at scale and speed
to enable the rollout of additional grid infrastructure in the region.
The lack of investment in grid infrastructure is one of the reasons for
ongoing blackouts in many parts of Southern Africa. With 180-million
people living in the region exposed to ongoing power disruptions,
universal access to reliable electricity will improve people’s health,
safety, financial inclusion and economic activities. If we don’t invest
in grids today, we will face gridlock tomorrow. This is even more
pressing from an energy transition perspective as the world needs
to embrace green electrons on the grid.
What can mobilising blended finance at scale do for the power
sectors in Africa?
It’s a game-changer. It removes the barriers that prevent energy
infrastructure projects from getting off the ground, converting plans
into reality, creating tangible resource assets and viable solutions to
the energy challenges experienced by millions of people in Africa
daily. With public capital absorbing the risk, private capital can step
in to set projects in motion.
How will RTIFF’s fund architecture be structured?
CFM has applied its standard blended finance fund architecture and
design in creating RTIFF. RTIFF will comprise a $100-million target
“Development Fund” to provide concessional capital and development
expertise, including support on viability studies, legal and financial
structuring, planning and ESG compliance; and a $1.2-billion target
“Construction Fund” that will make direct investments through
the provision of construction finance and value-add expertise for
project builds.
Kevin Anderson, Head of Strategic Initiatives, Climate Fund Managers.
READ REPORT
THOUGHT [ECO]NOMY
greeneconomy/report recycle
Unlocking Smart
Grid Opportunities
in Emerging Markets
and Developing
Economies
UNLOCKING SMART GRID OPPORTUNITIES IN EMERGING MARKETS AND
DEVELOPING COUNTRIES | International Energy Agency | [Revised version, February 2024]
The clean energy transition requires a fundamental transformation of power systems, including much
higher levels of digitalisation at scale across all grid domains, from generation to transmission and
distribution to end-use. Strong policy attention is required to scale up investments in smarter and
more resilient grids in emerging and developing economies where electricity consumption is set to
grow at a rapid rate while also providing greater levels of electricity access.
Investments in smarter and more resilient grids will be necessary to accommodate the greater
deployment of renewable energy and enhance energy security. Digital technologies designed for power
systems are instrumental in unlocking essential system services required to integrate high shares of
variable renewable energy. They can also provide solutions to leverage data flows, connectivity and
management across the whole electricity system. To unlock these digital opportunities, adequate
planning, investment and policy action are needed. This report guides energy policymakers on ways to
enable and drive investments in smart and resilient electricity grids. It also gives suggestions on how to
start creating an environment that supports the effective use of innovative digital technologies within the
electricity sector. It draws on examples and case studies to show the wide range of digital opportunities and
solutions that can help governments implement efficient and smart power systems.
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