African Solar Project as Searchfund?

searcher profile

June 16, 2019

by a searcher from Amherst College in Portsmouth, NH 03801, USA

I'm helping a colleague figure out how to finance solar farms that will generate power locally, but also ship it to neighbors with less political and economic stability.  We believe the opportunity is low risk enough that it fits the profile of what a search fund would look like (e.g. buying an existing business.) . The question is not of the need, but which specific geography, regional and technology partners are best.  (This is the use of the search dollars / time.)

7
11
124
Replies
11
commentor profile
Reply by a searcher
from Gordon Institute of Business Science, University of Pretoria in Dubai - United Arab Emirates
I would be mindful of regulatory impact. If you 'ship' power on a utility scale, you would need to use either the distribution or transmission network that comes with both strict regulation and long-winded negotiation. If you modularize solar installations at the point of consumption, you would need to consider the security of the installed assets. Either way, you would need to understand the local market. In South Africa, you could consider providing financing for off-grid installations as this area is getting a lot of traction due to the increased volatility in electricity supply. I would recommend this as a new venture though, as this doesn't make sense in the search fund parameters (existing operation with stable growth and recurring revenue, etc.).
commentor profile
Reply by a searcher
from Amherst College in Portsmouth, NH 03801, USA
Very helpful to think of the micro-financing - another angle that such financing could offer is that there is more agency for the individuals setting it up the solar farm ... and piping back into the grid = vs. the big northern hemisphere group / money etc. charging in colonial style... having it be home grown is WAY better for sure - Botswana I think is the place to start.
commentor profile
+9 more replies.
Join the discussion