Renewable-energy solution for South African businesses

FNB in collaboration with strategic partners says it has designed a solution to help businesses address the growing demand for affordable, reliable, and sustainable energy solutions.

FNB Energy Solutions enables businesses to acquire a comprehensive energy-as-a-service solution by means of a power purchase agreement (PPA) model where FNB Energy Solutions retains ownership of the renewable-energy infrastructure and sells the energy produced to the client. The solution focuses primarily on solar PV installations with or without battery back-up, but other renewable-energy technologies can also be considered to meet specific client’s needs.

The solution is aimed at businesses that have significant daytime electricity demands, typically spending upwards of R200 000 a month on electricity. The minimum generation capacity provided is 300 kW, which suits high-energy users that have sufficient roof space to accommodate the solar panels required.

FNB Sustainable Energy lead Monique Botha says, “FNB Energy Solutions focuses on helping businesses to address challenges such as energy security and rising electricity costs, while also supporting their efforts to meet their sustainability targets – all without significant upfront capital investments or the need to take on the management of their renewable-energy assets.”

The model involves collaboration between FNB, as the funding provider for the projects, with technical and asset management partners that are established in South Africa's renewable-energy industry. On the technical side, development partners such as ACES Africa, Nuvo Energy, Rhino Energy and RenEnergy bring expertise in solar PV, energy storage solutions and custom system design. For project facilitation and ongoing management, SOLINK and Matriarch provide specialised advisory services and help ensure optimal asset performance.

FNB Energy Solutions retains ownership of the renewable-energy infrastructure which is installed at a client’s premises by one of its development partners and managed by FNB Energy Solutions.

The model allows businesses to bypass the need for large capital investments, as FNB Energy Solutions takes full ownership of the energy assets, removing the burden of capital expenditure from the client’s balance sheet.

“FNB Energy Solutions arose from the recognition that South African businesses have a broad set of energy needs, including achieving sustainability goals, lowering costs and address energy certainty challenges,” explains FNB head of sustainability Kyle Durham. “So, while loadshedding has become less of a critical issue, making the shift to renewable energy is still a strategic priority for many.”

The company notes that its model is different to other PPA embedded energy solutions in several key areas. While many providers in the market require 20-year to 25-year commitments, FNB Energy Solutions typically offers shorter PPAs, providing businesses with greater flexibility.

In addition, cost savings are a focal point and development partners are mandated to design efficient and cost-effective solutions that potentially offer immediate financial benefits to clients.

The solution also offers a path to ownership whereby, after the fifth year, clients can purchase the entire renewable-energy plant at a predetermined price.