Rand Merchant Bank (RMB) has acquired a 25% shareholding in Remgro’s Ubiquity Energy Platform, a strategic energy-focused investment vehicle.<\/p>\n
Ubiquity is the holding company of Energy Exchange of Southern Africa (Energy Exchange).<\/p>\n
Both RMB and Remgro said that they are committed to investing in the private power market to unlock South Africa’s natural renewable resource potential.<\/p>\n
Energy Exchange – a Nersa-licenced electricity trader – offers corporate customers an alternative source of electricity produced by independent power generators.<\/p>\n
\u201cAs a large-scale purchaser of electricity from generators of power, Energy Exchange is a key enabler in the private power landscape, connecting South African corporates to privately produced, renewable energy,” said Sindisiwe Mosoeu from RMB.<\/p>\n
“In addition to helping corporates meet their de-carbonization goals, Energy Exchange will supply a bespoke energy profile to match their unique consumption requirements. This will be done while solving for a balance in competitive pricing, long-term price certainty and flexible contract tenors.\u201d<\/p>\n
Energy Exchange will also allow corporates to tailor their energy profile by blending different sources of electricity – including wind, solar, biomass and hydro. A blended approach can match a consumer’s needs far more accurately than a single source of electricity.<\/p>\n
“The South African market requires a material shift in the way electricity is produced, sold, and consumed and will need bold thinking and innovative solutions,” said Philip De Villiers from RMB.<\/p>\n
“South Africa already has both the natural resources and the capability to address our current energy constraints.\u201d<\/p>\n
Pieter Uys from Remgro said that the company has been developing Energy Exchange for over five years and has already built a strong pipeline on the supply and demand side of the electricity trading business.<\/p>\n
The electricity tariffs charged by Energy Exchange escalate at inflation, which provides a predictable and stable cost estimate for businesses.<\/p>\n
\u201cThe platform offers the benefit of aggregation, allowing multiple customers to access scale benefits in procuring energy. In turn, large power generators are able to negotiate with a single centralised electricity buyer,\u201d Uys said.<\/p>\n