Small scale energy infrastructure

Small scale energy infrastructure

Photo by Shutterstock

Small scale energy infrastructure
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Utilities
Business Model Description

Provide small scale renewable energy infrastructure to promote access to underserved communities, such as rooftop photovoltaic (PV) systems or off-grid hydrogen generators.

Expected Impact

Improve access to clean energy and provide energy security in rural areas.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10) Climate Action (SDG 13)
Sector Sources
  • 1) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. https://dashboards.sdgindex.org/#/ZAF 2) National Science and Technology Forum (2019). The National Development Plan. http://www.nstf.org.za/wp-content/uploads/2019/04/All-The-NDP-1.pdf 3) Organization for Economic Cooperation and Development (2019). Gender Equality and Sustainable Infrastructure. http://www.oecd.org/governance/gender-equality-and-sustainable-infrastructure-paris-march-2019.htm 4) Industrial Development Corporation (2019). The Case For Investing in South Africa. https://sainvestmentconference.co.za/wp-content/uploads/2019/11/The-case-for-investing-in-South-Africa-2019-Executive-summary-31-October-2019.pdf 5) Sustainable Infrastructure Development Symposium (2020). Sustainable Infrastructure Development Symposium South Africa. https://sidssa.org.za/
  • 6) Deloitte (2020). The Impact of COVID-19 on infrastructure projects and assets. https://www2.deloitte.com/content/dam/Deloitte/ng/Documents/finance/ng-the-Impact-of-COVID-19-on-Infrastructure-project-and-assets_27052020.pdf 7) Arndt, C., Davies, R., Gabriel, S., Harris, L., Makrelov, K., Modise, B., Robinson, S., Simbanegavi, W., van Seventer, D. and Anderson, L. (2020). Impact of Covid-19 on the South African economy. https://sa-tied.wider.unu.edu/sites/default/files/pdf/SA-TIED-WP-111.pdf 8) Bertha Centre for Social Innovation and Entrepreneurships (2019). Innovative Finance in Africa Review. https://www.gsb.uct.ac.za/Downloads/InnovativeFinanceAfrica_1.pdf 9) National Science and Technology Forum (2019). Series on the NDP. http://www.nstf.org.za/wp-content/uploads/2019/04/All-The-NDP-1.pdf 10) United Nations Development Programme (2016). Gender and Sustainable Energy Policy Brief. https://www.undp.org/content/dam/undp/library/gender/Gender%20and%20Environment/PB4-AP-Gender-and-Energy.pdf 11) Creamer, M. (2019). South Africa well placed to supply competitive hydrogen – CSIR. https://m.engineeringnews.co.za/article/south-africa-well-placed-to-supply-competitive-clean-hydrogen-csir-2019-08-28/rep_id:4433
IOA Sources
  • 12) Hydrox Holdings (2020). Unlock hydrogen. https://hydroxholdings.co.za/home/ 13) GreenCape (2020). Energy Services Market Intelligence Report. https://www.greencape.co.za/assets/Uploads/ENERGY_SERVICES_MARKET_INTELLIGENCE_REPORT_20_3_20_WEB.pdf 14) Interview with Jack Radmore from GreenCape on the 24/07/2020. 15) Filipova, A and Morris, M. (2018). Small-scale embedded generation in South Africa: Implications for energy sector transformation from a local government perspective. https://sa-tied.wider.unu.edu/sites/default/files/WP-13-2018-Filipova.pdf 16) PACENation (2020). What is PACE financing? https://pacenation.org/what-is-pace/
  • 17) Interview with Jack Radmore from GreenCape on the 07/07/2020. 18) GreenCape (2020). The alternative Service Delivery Unit. https://www.greencape.co.za/content/sector/the-alternative-service-delivery-unit 19) Heinrich Boell Stiftung (2016). Energy Poverty and Gender in Urban South Africa. https://za.boell.org/sites/default/files/status_quo_report_-_urban_energy_poverty_and_gender_in_south_africa-_final-1.pdf 20) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa. http://www.statssa.gov.za/MDG/SDGs_Country_Report_2019_South_Africa.pdf 21) Industrial Development Corporation (2019). The Case for Investing in South Africa. 2019. https://sainvestmentconference.co.za/wp-content/uploads/2019/11/The-case-for-investing-in-South-Africa-2019-Executive-summary-31-October-2019.pdf
  • 22) GreenCape (2020). Wifi enabled solar street lights for Witsand: MoU signed between Think WiFi and GreenCape. https://www.greencape.co.za/content/wi-fi-enabled-solar-street-lights-for-witsand-mou-signed-between-think-wfi-and-greencape/ 23) South African Alternative Energy Association (2019). We can help you link with funding for RE projects. https://www.saaea.org/renewable-energy-news/category/funding%20for%20renewables 24) National Planning Commission (2018). NPC Economy Series: Energy. https://www.gov.za/sites/default/files/gcis_document/201802/npc-energy-paper.pdf 25) Patel, M. (2020). OPINION: The role of small-scale embedded generation in energy resilience. https://www.iol.co.za/business-report/energy/opinion-the-role-of-small-scale-embedded-generation-in-energy-resilience-42654700 26) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. https://sustainabledevelopment.un.org/content/documents/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf
  • 27) United Nations Development Programme (2020). Human Development Report. https://www.ng.undp.org/content/nigeria/en/home/library/human_development/the-2020-human-development-report.html 28) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa. http://www.statssa.gov.za/MDG/SDGs_Country_Report_2019_South_Africa.pdf