Innovent and Powerway To Revolutionize Rooftop Market in Africa
With the European and American solar rooftop power generation market very advanced in its maturity, the InnoVent Powerway PV SA model has created what the company says is a viable solution for the African market adapted for local conditions.
The leasing model is structured so that consumers of electricity will access solar power for less than the rate at which they currently pay for normal power. No capital outlay will be required from consumers. TÜV Rheinland and Marsh will provide the system performance review, measurement and insurance products respectively. This provides a one stop solution to Powerway PV SA customers, by mitigating major risks.
InnoVent is an asset leasing company in South Africa, operating in technology asset leasing in over 4 countries in Africa and the United Kingdom.
Powerway Renewable Energy Co. Ltd is a solar farm builder providing for integrated sales to design, installation, monitoring and efficiency services. Their pricing of products will be influenced by Powerways' local investment in three companies: a PV module manufacturer, a solar inverter manufacturer and an engineering and mounting brackets manufacturer. This combination, together with InnoVent creates a proposed "˜One Stop Solution' for the market.
In support of South Africa's localization strategy, Powerway PV SA is setting up manufacturing plants in COEGA, Port Elizabeth which will be operational by June 2014.
Powerway PV SA has teamed up with some of the largest global players in solar PV manufacturing i.e. JA Solar and Sungrow to create an end to end solar manufacturing plant in Africa. Plans include; transfer skills, create 2,500 jobs, save more than 5GW of energy in 5 years and create a sustainable, pioneering long standing relationship between China, South Africa and the Rest of Africa.
Further, in support of the strategy to transfer skills and grow the renewable energy market in South Africa, Powerway PV SA will consider the introduction of a local strategic investor to their business.
Commenting on the partnership, Benson Wu, CEO of Powerway Renewable Energy Co. Ltd said "With its irradiation resource second to none, South Africa is the best country to develop solar energy. With the net metering practice in place, added with our leasing model, I believe South Africa will be one of the biggest solar markets in the world. Powerway is proud to be part of it. "
Zakhe Khuzwayo, Group CFO of InnoVent said "As far as access to affordable renewable energy is concerned, this partnership is a game changer. This space has just experienced a tectonic shift and will never be the same again in Africa".
Charles Domingo, CEO of Powerway PV SA, said "With all the current work and marketing that we have done in South Africa and the rest of Africa over the past two years an extensive pipeline of new projects is in place which will be fast tracked with the current partnership with InnoVent. This will allow for the creation of new jobs and transfer of skills to South Africans in record time with the practical on the job training that can be effected. A huge win for South Africa and our youth".
The transaction was structured and advised on by Tactus Advisory Services, a boutique corporate finance and advisory firm focused on emerging markets.
