Rand Merchant Bank (RMB) has acquired a 25% stake in Remgro’s Ubiquity Energy Platform, a strategic energy-focused investment vehicle.
Ubiquity is the holding company of Energy Exchange of Southern Africa (Energy Exchange).
Both RMB and Remgro said they are committed to investing in the private energy market to unlock the potential of South Africa’s natural renewable resources.
Energy Exchange – an electricity trader approved by Nersa – offers business customers an alternative source of electricity produced by independent power generators.
“As a large-scale purchaser of electricity from power generators, Energy Exchange is an important force in the private energy landscape, connecting South African companies with privately produced, renewable energy,” said Sindisiwe Mosoeu of RMB.
“In addition to helping companies meet their low-carbon goals, Energy Exchange will deliver a tailored energy profile to suit their unique consumption requirements. We are looking for a balance between competitive pricing, long-term price certainty and flexible contract duration.”
Energy Exchange also allows companies to customize their energy profile by combining different electricity sources, including wind, solar, biomass and hydro. A combined approach can match a consumer’s needs much more closely than a single source of electricity.
“The South African market requires a fundamental shift in the way electricity is produced, sold and consumed and will require bold thinking and innovative solutions,” said Philip De Villiers of RMB.
“South Africa already has both the natural resources and the capacity to address our current energy constraints.”
Pieter Uys of Remgro said the company has been developing Energy Exchange for more than five years and has already built a strong pipeline on the supply and demand side of electricity trading.
Electricity rates charged by Energy Exchange escalate with inflation, providing a predictable and stable cost estimate for businesses.
“The platform offers the advantage of aggregation, allowing multiple customers to access economies of scale when purchasing energy. In turn, large power producers can negotiate with a single centralized purchaser of electricity,” Uys said.
Read: Warning about solar energy on roofs for complexes and estates in South Africa
