ZB has said it will give loans for solar projects in a bid to increase access to clean energy as part of the financial institution’s efforts to protect the environment as well as assisting Government to power communities.
The bank will avail the loans to people engaged in solar business and individuals who want to use the alternative energy source in their homes.
Solar is one renewable energy alternative that the world is increasingly opting for as efforts to curb the effects of climate change induced by emissions intensify.
With nearly 40 percent of the world’s population relying on wood, coal, charcoal or animal waste to cook their food, it is crucial to provide cleaner energy and protect mainly women and children from breathing in toxic smoke that causes lung disease and kills nearly two million people a year.
It is estimated that at least 1,3 billion people in the world have no access to energy and two million deaths a year occur due to lack of energy.
Calls by the former UN secretary-general Ban Ki Moon in September 2011 at the launch of the ‘Sustainable Energy For All SE4ALL Initiative’ have spurred governments across the world to ensure everyone has access to energy.
UN SE4ALL Initiative is a global force for catalysing the efforts of various stakeholders around achieving SE4ALL by 2030 through setting targets around ‘Universal Energy Access, Renewables and Energy Efficiency’.
In an effort to accelerate energy access to all, the Power for All global campaign launched in 2014 by industrial associations and other players is geared to promote Distributed Renewable Energy (DRE) systems as a solution.
With many households living in energy poverty, DRE is the new strategy to meet the Sustainable Energy Access for All target by 2030.
Speaking to The Patriot on the sidelines of the presentation of ZB Bank’s Audited Financial Results for the year ending December 31 2017, group chief executive Ronald Mutangagayi said the bank was working with Government to assist in funding solar systems that enable lighting and water heating, among others.
“We have not yet given a figure of the amount we are putting up for solar but anyone who meets the credit criteria and has the capacity to repay the loan can get it. Of course we shall look at the risk management capacity of persons before we can give out the loan,” said Mutangagayi.
Zonful Energy’s William Ponela dismissed claims that the loans would procure outdated equipment.
“For higher up-market products such as water pumps, fridges and television, there is not much change in systems because the uptake is slow since the systems are expensive while for solar home systems, upgrading is faster and repayments on these can go up to three years. The technology is not as fast because it changes with generations,” Ponela said.
“Solar prices are, however, dropping and if this trend is anything to go by, we expect them to drop by 15 US cents/watt by end of next year, making solar one of the cheapest forms of energy. Quality and convergence are getting better with Artificial Intelligence creating systems that automatically sense the weather patterns and adjust themselves to energy saving mode.”
In order to urgently increase access to modern energy services, especially in rural areas, and increase energy security as well as address the human health and environmental challenges of current energy systems, SADC has approved the establishment of the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE).
SACREEE will contribute to the development of thriving regional renewable energy and energy efficiency markets by addressing gaps related to policies and regulations, capacity building, technology co-operation and the promotion of investments.
SADC recognises that regional integration is central to addressing the existing energy challenges and that it will create new opportunities for renewable energy and energy efficiency technologies and services across the region.
More than 153 000 people die each year from household air pollution in the SADC member-states, caused mainly by burning of solid fuels for cooking
Electricity access rates vary widely, from nine percent to 100 percent, which suggests there are still large areas which remain under-served by grid electricity despite strong regional efforts to address this gap.
Mini-grid projects are under way in the DRC, Malawi, Mozambique, South Africa, Zambia and Zimbabwe.
Many are being developed by private companies, such as regional concessionaires in Botswana and South Africa, or by large NGOs.
The use of renewable energy sources in transport is also growing, although it is confined to the use of ethanol and biodiesel for transport fuel — an established practice in Malawi and Zimbabwe, with Angola, Mozambique, South Africa, Swaziland and Zambia also establishing mandates for regular blending of ethanol and biodiesel with fossil fuels.
South Africa has developed a progressive strategy which includes both biofuel substitution and increased efficiency in transport.
Biomass — for electricity generation as well as for industrial heating applications — is growing in importance in the SADC region.
The potential for biomass-generated electricity is estimated at 9 500MW, based on agricultural waste alone.