Ecsponent eyes green energy unit

JSE-listed financial services group Ecsponent plans to build a renewable energy division as it eyes attractive returns on solar power projects, says CEO Terence Gregory.

JSE-listed financial services group Ecsponent plans to build a renewable energy division as it eyes attractive returns on solar power projects, says CEO Terence Gregory.

The small-cap firm is seeking shareholder approval for the acquisition of Gaboronebased Invest Solar Africa, which is planning to list on the Botswana Stock Exchange.

Invest Solar Africa was constructing solar parks in Zimbabwe that could generate as much as 300MW of power once complete, Gregory said.

Through an offtake agreement with that government, the plants would supply power to the national grid at much better rates than Zimbabwe’ s offtake agreement with SA’s Eskom.

A project on 40ha of land in the Bwoni Village, southwest of Harare, will cost $23m (R333m).

Old Mutual Asset Management Zimbabwe contributed $7m towards the project, while Norsad Finance provided funding worth $5m.

Invest Solar Africa is also conducting a feasibility study for a project in Botswana.

Gregory said renewable energy had become attractive as projects could now reach break-even after just five years.