Towards A Southern Africa Development Community (SADC) Model To Assess Financing Options Of Renewable Energy Technologies
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V. H. van Zyl-Bulitta, B. Amigun & A. C. Brent
Access to energy in the form of electricity and fuels is a necessary requirement for sustainable development. Despite the resource abundance for Renewable Energy Technology (RET) in Africa, the potential of RETs is still underexploited. In light of the COP15 meeting, RET is a focal point in the response to global challenges, such as climate change and energy security, and the investment landscape in RET and energy efficiency has recently undergone considerable transformation. To realise its potential, investment in RET infrastructure is critical for Southern Africa. However, the development of sustainable energy is curbed in the region by the lack of adequate and secure finances. A plethora of generic technological and non-technological restrictions, such as scarce political support and poverty, impede RET (financial) support and adoption. A deeper understanding of the consequences of different energy policies could positively influence stakeholders, gain investor confidence, and subsequently contribute to the global community. The financial valuation of factors that are important for RET introduction, pertaining to the risks of RETs, are described through a systems dynamics approach. Specifically, issues in the social and environmental spheres are discussed by means of a Southern African case study. By applying such an approach, through a further research agenda, it is envisaged that RET implementation may be accelerated. Keywords: energy finance, system dynamics, renewable energy, Africa.
energy finance, system dynamics, renewable energy, Africa