RE: Africa energy23 Feb 2025 23:54
So, AP has about 8% investment in Chariot. Chariot owns 49% of Etana. Tharisa is worth £178m and AP has a £90m investment in Tharisa (about 50%) which has done a deal with Etana to supply renewable energy.
_" Chariot has broadened both its exposure and approach to the renewable energy sector within South Africa, in acquiring a 49% interest in Etana Energy (Pty) Limited alongside partner H1 Holdings (Pty) Limited which holds 51%
H1 has a proven track record in developing and investing in large renewable projects.
Etana is one of five companies to hold an electricity trading licence granted by the National Energy Regulator of South Africa. Its objective is to provide end to end electricity solutions to help address the significant power requirements across South Africa through connecting new and existing energy generation projects to commercial and industrial users.
Through this platform Chariot is tapping into a wide and essential network, one that could become one of the most influential businesses in facilitating, installing, and delivering greener, competitive and sustainable energy across South Africa’s national grid over the next decade.
This business connects efficient supply to end users through the trading platform but it also enables the development of new, renewable energy generation, in which this Power business can participate."
MARKET OPPORTUNITY:
South Africa is the largest electricity market in sub-Saharan Africa. It is predominantly supplied by coal fired power generation and as a result, around 80% of greenhouse gas emissions come from the energy sector. There is a major lack of supply due to insufficient energy generation and power outages have significant macroeconomic impacts.
These two fundamental issues underpin the rationale for the rapid market deregulation that is now taking place, enabling private sector renewable power generation and trading through the national grid. The SA National Energy plan has forecast the needs for an additional 30GW of renewable energy to be procured by 2030, with the first 4GW to be added into the grid by the end of 2024.
As a result, there is significant market demand for green and competitively priced electricity and multiple commercial and industrial offtakers have already been secured across mining, industry, municipal and retail sectors. The Etana model is already working, as evidenced by the first wheeling of renewable energy through Cape Town’s grid in September 2023. Wheeling is a process where electricity is bought and sold between private parties, using the existing grid to transport power from the point of generation to end-users.
On the generatation side, 400MW of gross wind generation capacity has been identified and is in negotiation. The trading platform enables Chariot’s participation in these large renewable projects, and there is a strong focus on securing a future pipeline of large generation projects. "
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