Interview by Rikki Stancich

CSP Today: The Standard Bank has underwritten several PV projects participating in the Renewable Energy IPP procurement process. Why didn't the bank back any CSP projects?

Alastair Campbell: We did pitch on a couple of CSP projects, but were unable to secure a role.

CSP Today: Will the Standard Bank likely underwrite any CSP projects going forward?

Alastair Campbell: If the funding structures and risk allocations are bankable then yes we will.

CSP Today: What is the potential for CSP to compete with coal as a baseload alternative in South Africa?

Alastair Campbell: In the longer term it is significant, but for the moment the high cost of CSP relative to baseload is going to make it difficult for CSP to compete.

CSP Today: What are the major roadblocks to CSP deployment in South Africa?

Alastair Campbell: The availability of sufficient water in the parts of the country where CSP deals are being contemplated.

CSP Today: The first phase of the competitive bidding process was oversubscribed. What is the estimated market potential of South Africa's solar sector overall? What is the estimated potential for CSP?

Alastair Campbell: This is a difficult question to answer. The potential is considerable given the energy resource. It will however be constrained by price, water and grid congestion in the general Upington area.

CSP Today: Roughly what level of investment in required to make the necessary upgrades to South Africa's grid infrastructure, and where is this investment likely to come from?

Alastair Campbell: This is also a difficult question to answer. On a project level it does depend on where a project is located, proximity to the grid and level of step up (to the transformer) required. At a macro level, the amount of infrastructure upgrade will depend on the number of projects developed in the general Upington/Kimberly/De Aar region.

CSP Today: To what extent is the government promoting local supply chains for renewable energies? What incentives are currently in place or pending?

Alastair Campbell: It is being done through the REIPP procurement process by legislating for local content. I am not aware of any incentives in place or pending.