Google Blog, Thursday, May 30, 2013
As we search
for investments that can help speed up the adoption of renewable energy, we’ve
been looking beyond the U.S. and Europe to parts of the world where our
investments can have an even greater impact. We’ve just closed our first
investment in Africa: $12 million USD (103 million Rand) investment in the
Jasper Power Project, a 96 megawatt solar photovoltaic plant in the Northern
Cape province of South Africa. Upon completion, Jasper will be one of the
largest solar installations on the continent, capable of generating enough
electricity to power 30,000 South African homes. The project, developed and
funded by SolarReserve, Intikon Energy and the Kensani Group, is also backed by
Rand Merchant Bank, the Public Investment Corporation, Development Bank of South
Africa and the PEACE Humansrus Trust.
 |
| View Jasper Power Project in a larger map The Jasper Power Project is located in the Northern Cape Province of South Africa, near Postmasburg |
When we
consider investing in a renewable energy project, we focus on two key factors.
First, we only pursue investments that we believe make financial sense. South
Africa’s strong resources and supportive policies for renewable energy make it
an attractive place to invest—which is why it had the highest growth in clean
energy investment in the world last year. Second, we look for projects that
have transformative potential—that is, projects that will bolster the growth of
the renewable energy industry and move the world closer to a clean energy
future. The Jasper Power Project is one of those transformative opportunities.
To explain why, perhaps some background would be helpful.
Back in
2008, South Africa experienced a severe energy shortage, which resulted in
blackouts throughout the country and slowed down economic growth. Since then
the South African government has been actively supporting the growth of new
sources of electricity to power the nation. While today South Africa is
primarily dependent on fossil fuels, there’s lots of potential for renewable
energy—it’s a country blessed with abundant wind and solar resources—and the
government has set an ambitious goal of generating 18 gigawatts (GW) of
renewable energy by 2030 (as a comparison, the entire South African grid is
currently 44 GW).
To meet
this goal, the South African government has established the Renewable Energy Independent Power Producer Procurement Program (REIPPPP). Through the program,
renewable energy projects compete on the basis of cost and contribution to the
local economy to be awarded a contract with Eskom, South Africa’s state-owned
energy utility. Jasper and the other projects being developed through the
REIPPPP have the potential to transform the South African energy grid. And given
South Africa’s position as an economic powerhouse in Africa, a greener grid in
South Africa can set an example for the whole continent.
 |
| Once constructed, the project will use solar panels like these. |
Just as
compelling are the economic and social benefits that the project will bring to
the local community. Jasper will create approximately 300 construction and 50
permanent jobs in a region experiencing high rates of unemployment, as well as
providing rural development and education programs and setting aside a portion
of total project revenues—amounting to approximately $26 million over the life
of the project—for enterprise and socio-economic development. We appreciate how
forward-thinking the South African government has been in designing the REIPPPP
to encourage these kinds of local economic benefits.
Google has
committed more than $1 billion to renewable energy investments and we continue
to search for new opportunities. Our search has brought us from the U.S. to
Europe and now to Africa. We’re excited to see where else it might lead.
Posted by
Rick Needham, Director, Energy & Sustainability
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