Browsing by Author "Kruger, Wikus"

Now showing 1 - 6 of 6
  • Thumbnail Image
    Item
    Open Access
    An economic and social review of the preferred bidders under the small projects IPP procurement programme: a cross-case synthesis
    (2019) Mew, Timothy; Marquard, Andrew; Kruger, Wikus
    The literature on the economic and social impacts of infrastructure projects, such as renewable energy projects, largely point towards these projects having positive direct and indirect benefits for the local economy, especially if the ownership, components, construction, and operation are sourced from local enterprises. The recipients of project expenditure, the location of their employees and to whom the profits accrue are essentially the factors that determine how much local economic benefit these renewable energy projects have. With this in mind, the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) was structured in such a way that gave additional weighting to socioeconomic criteria such as job creation, local content, local ownership, Socioeconomic Development (SED) funding, and Enterprise Development (ED) funding among others. The structuring of the REIPPPP in this way highlights the overarching policy objectives in the energy sector and how these renewable energy projects have been identified by the government as a means to achieve these socioeconomic objectives. The REIPPPP formed the foundation upon which the Small Projects Independent Power Producers Procurement Programme (SP-IPPPP) was based. The SP-IPPPP was created by the government to further localise the renewable energy industry in South Africa and give local developers and suppliers better access into this emerging sector. This research sought to compare Small Projects under the SP-IPPPP with projects of the same technology under the REIPPPP (in bid window 3 and 4) in a cross-case synthesis. Using an embedded, multiple-case study design the commitments made by Preferred Bidders in each programme were compiled and contrasted. Following this, the results for the Small Projects were scaled-up to identify how justified the additional costs associated with the Small Projects are, given their co-benefits to the South African economy. The findings suggest that the impact of the Small Projects on the overall price of renewable energy from the chosen cases would be negligible; and therefore, the co-benefits from these projects could justify this price premium. Even when scaled-up to the 400 MW allocated to Small Projects, the impact on the overall cost of renewables from BW3 and BW4 could be argued to have been justified by the co-benefits afforded by these Small Projects. The impact on the electricity price from projects in the scenario and BW3 and BW4 was not substantial; however, the job creation, local (national) expenditure, and community (within 50km of the project site) benefit were substantial, which may vi incentivise policy makers to go ahead with the procurement in order to meet these soci oeconomic objectives. In terms of the best technology option for the SP-IPPPP, the findings suggest that solar PV and biomass (in particular) are better suited to this capacity and offer improved socioeconomic benefits without a drastic price premium. Wind energy on the other hand, appeared to have a notable price premium over the Large Projects without proportionate socioeconomic benefits and would perhaps be better left to the REIPPPP.
  • No Thumbnail Available
    Item
    Open Access
    Comparative analysis of BNP Paribas' approaches to energy sustainability, security, and costs in France and South Africa
    (2025) Corgnier, Julien; Zolfaghari, Badri; Kruger, Wikus
    This thesis investigates BNP Paribas' approaches to sustainability, security, and energy costs in France and South Africa, comparing the bank's strategies in response to energy challenges. The research problem focuses on banks' challenges in creating consistent energy sustainability strategies across different regulatory and socio-economic contexts. The study aims to understand how BNP Paribas balances sustainability and profitability in these regions. The research employs a qualitative methodology, using a comparative case study approach. Data was collected through interviews with key stakeholders and content analysis on secondary data, focusing on the bank's energy investment strategies, regulatory interactions, and responses to local challenges. The data was analysed thematically to identify patterns and differences in the bank's approaches in the two countries. The study concludes that regional contexts influence the effectiveness of bank's energy sustainability projects. In France, BNP Paribas has taken advantage of a stable regulatory environment to promote renewable energies. They target 90% renewables in their portfolio by 2030, supported by policies like the European Green Deal. In South Africa, challenges such as coal dependency, regulatory inconsistencies and socio-economic complexities limit the bank's efforts. As a result, direct energy investments were reduced and its Johannesburg branch closed in 2024. Instead, BNP Paribas has focused on stable African regions such as Morocco, aligning itself with its sustainability goals. These findings contribute to the field of sustainable finance by providing insights into the complexities banks face in balancing sustainability and profitability. The study underscores the importance of context-specific strategies and the role of banks in promoting global energy transitions.
  • Thumbnail Image
    Item
    Open Access
    Crowd sourcing energy poverty data in South African informal settlements: the opportunity of mobile phone technology
    (2015) Pillay, Kimenthrie; Prasad, Gisela; Kruger, Wikus; De Groot, Jiska
    Energy poverty undermines development at a large scale. It is most overtly experienced in informal settlements, where the use of fuels like paraffin, charcoal and wood prove hazardous and harmful to health and wellbeing. The expenditure on and use of energy services in informal settlements are largely undefined, which severely undermines the success of energy access and safety initiatives. Despite the poverty of informal settlements, mobile phone ownership is high in these areas. This research aims to explore the potential and applicability of a digital data collecting systems using a mobile application that is accessible on entry-level mobile phones with basic internet access to collect information about energy access, affordability and multiple fuel use in these areas. As part of this research, a mobile application platform and data collection platform was developed which enables survey design and data collection in real time. The platform allows for creation of weekly surveys that question energy use, expenditure and affordability; it also offers other functions that are designed to increase awareness of fuel safety and efficiency. The application was piloted in lmizamo Yethu in Cape Town. Six weeks of continuous data was extracted from 200 users using airtime incentives with an overall reach of 306 households. The quality and quantity of data received was of high calibre. The results indicate that the potential for using this system and mobile phones as a data-collecting tool in Africa is high.
  • Thumbnail Image
    Item
    Open Access
    Defying the odds: Understanding the critical success factors for financing independent powers producers in Zimbabwe
    (2017) Zunguze, Timisela; Eberhard, Anton; Kruger, Wikus
    Background: Since the introduction of legislation in Zimbabwe allowing private participation in generation, there has been significant investor interest in financing independent power producers (IPPs). However, this interest has not materialized into actual investment. Of the 29 IPPs licensed by the Zimbabwe Regulatory Authority (ZERA), only seven have reached financial closure and are supplying the grid. This dismal performance in the IPP space is a major concern for policy makers, particularly in light of the persistent power shortages plaguing the country. Stop gap measures such as the imports of power and load shedding are not sustainable and have detrimental effects on economic productivity. Expansion of private power generation is the only viable long term solution. In light of this, it is imperative to understand the factors that contribute towards successfully financing IPPs. Purpose: The purpose of this study is to explore and identify the critical success factors (CSFs) for financing IPPs in Zimbabwe and specific strategies to improve the implementation of IPPs, to ensure as far as possible, a win-win scenario for all stakeholders. Methodology: This thesis employs a mixed methods approach consisting of a qualitative first phase of expert interviews to identify a core list of success factors, followed by a quantitative second phase, in which a questionnaire survey is used to examine the relative importance and ranking of the factors and to determine whether the ranking of factors varies by stakeholder grouping. Findings: A total of 40 success factors were identified, and 38 of the 40 were rated as critical for financing IPPs in Zimbabwe by stakeholders. The study also revealed that the expected debt paying ability of the project; a transparent and cost reflective tariff framework and upholding of contracts are the most critical factors for all stakeholders. The results indicated that there is low agreement in the the ranking of CSFs between the private sector and public sector. Value: This study provides a valuable reference for all stakeholders that are interested in developing IPPs in Zimbabwe.
  • Thumbnail Image
    Item
    Open Access
    An explorative study of the synergy between social enterprises and local micro-entrepreneurs in the provision of off-grid clean energy access
    (2016) Pailman, Whitney Lisa; Batidzirai, Bothwell; Kruger, Wikus
    Alleviating energy poverty requires innovative and sustainable business models for delivering energy access. Social enterprises have entered off-grid clean energy access markets, pioneering innovative energy access business models, many of which involve the participation of local micro-entrepreneurs. This research study explores the synergy between social enterprises and local micro-entrepreneurs, specifically in terms of the business models used to incorporate local micro-entrepreneurs into off-grid clean energy value chains and the stages of the value chain in which the local micro-entrepreneurs participate. It furthermore identifies key enabling enterprise ecosystem conditions. A qualitative research methodology and a multiple case study design was used. The sample consisted of 11 respondents, selected through purposive sampling. A semi-structured interview served as the primary data collection instrument and a thematic within-case and cross-case analysis was carried out. This research study represents a pioneering effort, contributing to a growing body of knowledge on innovative participatory business models for energy access.
  • No Thumbnail Available
    Item
    Open Access
    Investing in Decentralised Power Generation – Financial Success Factors in South Africa's C&I Sector
    (2023) Fineberg, Zack; Twesigye, Peter; Kruger, Wikus
    In the context of a national energy crisis that has resulted in extreme load-shedding and constrained economic growth, the South African Government has introduced legislation and policies to enable private sector investment into power generation. This includes recent amendments to the Energy Regulation Act (ERA), the most important of which is an exemption from licensing requirements for generation facilities. As the largest power consumer, dominated by private ownership, the Commercial and Industrial (C&I) sector's investment in power generation represents the opportunity to increase the country's generation capacity with limited impact on the national fiscus. Using an exploratory multiplecase-study design, this study analyses and identifies the financial factors, mechanisms and barriers that enable or inhibit investment in decentralised generation (DG) by South Africa's C&I sector. The results indicate that (1) the reducing costs of photovoltaic technologies, (2) the emergence of specialised financial arrangements, such as Power Purchase Agreements (PPAs), and (3) tax incentives, enable investment by the C&I sector into DG by lowering financial barriers. Similarly, (4) increasing municipal electricity tariffs, and (5) the increasing intensity of load-shedding encourage the substitution of municipally supplied power for more affordable and reliable DG. In contrast, (1) the cost of battery technology, and (2) relatively low municipal feed-in tariffs constrain investment by disincentivising investment in DG at capacities required for the C&I sector to become entirely self-sufficient or net exporters of power. Finally, the results indicate that capital expenditure policies amongst business in the C&I sector, which are traditionally aimed at procuring production machinery, are not well suited to enable investment in DG.