Grid Africa Raises $2.8M To Combat Eskom’s 36% Price Increase

In a development for South Africa’s renewable energy sector, Grid Africa has raised R50 million ($2.8 million) in equity from Rifuwo Energy Partners. 

This investment comes at a pivotal time as the nation faces rising energy costs, exacerbated by Eskom’s proposed 36% tariff hike. 

The fresh funds will fuel the acceleration of solar energy projects across the country, offering businesses a cost-effective alternative to grid electricity.

Timing Amidst Rising Energy Costs

With South Africa’s state-owned power utility Eskom proposing a 36% tariff increase, businesses across the country are preparing for skyrocketing electricity bills. 

The National Energy Regulator of South Africa (NERSA) is reviewing Eskom’s application, which, if approved, could severely impact operational costs for enterprises nationwide.

“As energy prices rise, businesses need to explore alternative solutions like solar to shield themselves from financial strain,” said Norman Moyo, CEO of Grid Africa, according to Launch Base Africa.

“With the declining costs of solar technology and energy storage, we can help companies manage their electricity usage more efficiently.”

Peak Demand “Shaving” and Sustainability Goals

Grid Africa’s approach focuses on “peak shaving”—allowing businesses to reduce reliance on the national grid during peak times by switching to solar power. 

This strategy not only cuts costs but also promotes energy independence in an era where sustainability is more important than ever.

Rifuwo Energy Partners’ CEO, Hope Tshepo Segone, expressed excitement about the partnership, citing Grid Africa’s innovative approach to energy as a key driver in the country’s transition to renewable power. 

“Grid Africa is addressing critical energy challenges with practical solutions. Their solar projects will help businesses thrive while contributing to a more sustainable future,” said Segone.

Expanding Across Southern Africa

Founded in 2015, Grid Africa has successfully executed hybrid energy projects in challenging markets such as Zimbabwe, Kenya, and Ivory Coast. 

This latest funding boost will enhance their footprint, particularly as they expand into Zambia, a country grappling with frequent power outages. 

As South Africa’s energy landscape becomes increasingly uncertain, Grid Africa is positioning itself as a vital player in the renewable energy sector.