An Investigation into the Models for Financing Renewable Energy Production in Low-Income Settlements in Gauteng, South Africa: A Review

Abstract

South Africa faces a lack of reliable, modern electricity, essential for economic and social development. Many communities in Gauteng, particularly rural, informal settlements, are not connected to the national grid, leaving 39 percent of the province's residents in darkness and relying on paraffin and gas to survive the cold winters. In addition, these two components increase the number of dead fires in unofficial regulation and the price of electricity camps, increasing the load on the poor. In this study, we surveyed existing literature on the affordable funding model of renewable energy sources, collected primary data in structured industry interviews and stakeholders. This research focused on this survey, focusing on domestic recurring models and analysing the appropriate financing model and financial exhibition source project funding, green finance, public, private partnership, Government subsidies and private investors also instruct foreign investors. Financial procurement model is mixed. In this study, we have developed a framework that allows representatives to link to the outlook of financiers and decision -making, using a mixed methodology approach, and allows you to allow reliable and useful research results. This gap represents a significant obstacle to renewable energy financing. Furthermore, the results indicate that innovative financing channels are needed to promote renewable energy development in Gauteng and South Africa, as traditional financing methods have had little effect in stimulating renewable energy development. Furthermore, the results show that green energy investors consider renewable energy sources to be very risky, even when supported by government policies. Therefore, the study proposes a financing model that brings together funders into small financial consortia to fund local renewable energy projects using a blended financing model. Such a model would spread risk across multiple investors, thereby reducing the potential risks of investments while achieving the goals and benefiting from tax credits and other incentives for investing in renewable energy.