- Sector : Sustainable Energy Solutions - Solar
- Location : Indonesia and South Africa
Overview
SCF is considering an investment in Shire Oak, a platform for the sourcing, development, and operation of renewable energy assets. In the context of SCF’s investment, the project would have a particular focus on Indonesia and South Africa.
In Indonesia, the platform is developing :
- rooftop commercial and industrial (C&I) solar assets
- remote island diesel genset replacements
- ground mount solar for industrial users
In South Africa, it is pursuing :
- C&I solar
- and the development of wheeled wind and solar projects with batteries
With 50MW+ of operating assets in Southeast Asia today, the platform has proven its ability to develop assets effectively. With SCF capital, the experienced Shire Oak’s management aims to deploy their extensive project pipeline to become one of the major sustainable energy developers and power producers in the target regions. By replacing vastly unsustainable sources of energy in the target geographies, like diesel generators on remote Indonesian islands or coal energy in South Africa, Shire Oak is expected to rapidly decrease CO2 emissions.
The Challenge
Indonesia and South Africa, both suffer from high emissions from their energy production mix but also from an unreliable production resulting in frequent power outage. Indonesia’s energy mix consists of more than 90% of supply from coal, oil, and natural gas. With Indonesia’s simultaneous economic growth, an anticipated $154bn in additional annual energy investments is anticipated to be needed to cope with energy demand until 2025. Likewise, South Africa’s energy mix consists of more than 90% of supply from coal, gas, and oil, with more than 72% originating from coal alone. As a result, both countries are in urgent need for a transition towards distributed, reliable, and less CO2 intensive renewable energy sources to provide more sustainable and continuous electricity throughout their countries. This is important not only for the reduction of CO2 emissions but to support their countries’ economic prosperity, enable more predictable livelihoods, and improve general living standards for their people.
SCF’s Involvement
Proposed Investment
SCF intends to inject its capital directly into the platform to support the ongoing development as well as construction of first pipeline projects in Indonesia, South Africa, and potentially Ecuador. A smaller portion of SCF capital will be used to support the platform more generally.
Our Target Impact
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SDG 7 Affordable and Clean Energy
We expect to generate 187,2451 MWh of clean and affordable energy for industrial and commercial use per year between both countries.
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SDG 8 Decent Work and Economic Growth
The project aims to create direct and indirect employment opportunities for the local population for its development, construction, and operating activities. SCF’s investment will also support the maintaining of the companies’ current 70+ staff located across South East Asia and Africa.
The project will support productive use that transforms power into income and a path out of poverty through improved power supply for commercial and industrial use. This is especially based on the increase in reliability of power production both in South Africa as well as remote Indonesian islands, where many businesses and operating models are obstructed from generating reliable incomes due to disruptive power outages.
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SDG 13 Climate Action
Using Gold Standard emission tools, we estimate 161,796 tons of CO2 emissions can avoided per year by mitigating power generation from mostly coal- and other fossil fuel-powered electricity sources.
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SDG 5 Gender Equality
A significant amount of employment opportunities should be created for women considering context specific needs.
The investment described above is under development by SCF. There can be no guaranty that the investment will be completed on the terms described or implied above, that SCF will be able to successfully invest in such investment or that impact targets will be achieved.
