Public Investment Corp (PIC) Boosts South Africa's Renewable Energy Sector with R16.5 Billion Investment

In a recent turn of events, South Africa's Public Investment Corp (PIC) has revealed ambitious plans to increase investments into renewable energy to aid South Africa's ongoing power crisis. This strategic move is to be executed in an efforts to bolster economic growth in this electricity-strapped nation.

Kabelo Rikhotso, the PIC's chief investment officer, announced on Tuesday, "Our renewable energy book currently stands at a significant R16.5bi billion in funding and exposure, and that figure is on a trajectory for growth."

State-owned Eskom's outdated and poorly serviced coal-fired facilities have reached critical levels, causing a struggle to accommodate the growing electricity demand. This stark instability in the power supply sector has seen a harsh rationing system being adopted, a desperate attempt to avoid a catastrophic grid failure.

The South African government's solution involves a pivot to independent power producers to bolster their generation capacity. Although the transition has encountered setbacks, the momentum is unmistakably shifting toward renewable energy. This move has been mirrored by financial institutions serving households and businesses with funding solutions aimed at diminishing reliance on state-owned electricity suppliers.

Proclaiming its commitment to investing in renewable energy, the PIC, Africa's largest fund manager overlooking about R2.6 trillion in assets and a top-holder of Eskom’s domestic bonds, is now taking calculated strides. The corporation's annual report demonstrates involvement in renewable energy projects that have collectively supplied over 2,000 megawatts to the national grid, deploying technologies such as photo-voltaic, concentrated solar power and wind energy.

Rikhotso highlighted the recent investment of 310 million rand made into Rifuwo Energy Partners on behalf of the Government Employees Pension Fund, marking the corporation's further reinforcement in this burgeoning sector. As a symbol of its commitment, he stated, “Where we can put solar panels on the roof, we are going to do it”.