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Energy Transition: Access to Finance Still a Challenge

Energy Transition: Access to Finance Still a Challenge

Experts from the energy and gas sector explained, this Wednesday, April 26, during the opening ceremony of the 9th edition of the Mozambique Mining and Energy Conference and Exhibition (MMEC), that the access to financing for companies that are working with renewable energy is a challenge, which jeopardizes the efforts for the progress of the energy transition.

“When we look at this process, we see that access to financing is still a major constraint for most companies that want to bet or are working in the renewable energy sector,” argued Motlokwe Sebake, general manager of Commercial Affairs and Clients of the Republic of Mozambique Pipeline Company (ROMPCO).

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Marco Morgado, Gigawatt Mozambique operations director shares the same thought, highlighting that “it is true that access to credit is a challenge for companies operating in the renewable energy sector but first, we have to be aware that climate change happens, that global warming is taking place, as well as we also have to accept that the energy transition is happening. That will help us realise the importance of this process.” And he raised a question, “how fast is the energy transition taking place, and how fair and responsible is the process being carried out?”

“On the issue of global warming, we know that in Africa, governments have set out to eliminate carbon emissions and we have seen priority action on this. So, it is happening. Now, how fast the energy transition process is is a matter of reflection, but I think it is clear that it is underway and it will take time because it is not a matter of being solved in ten years.”

At the same session, The Petroleum, Oil and Gas Corporation South Africa’s Interim Group Executive Director, Sandisiwe Nceman, advocated the need to pay more attention to diversifying energy sources to ensure energy security. “We have to be available to diversify energy sources. We have to look at sources like, solar, gas, hydro and wind. And I think gas will contribute to the improvement of the environment as it is clean, I also believe in wind energy as it is also clean and sustainable.”

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“We have to invest in gas projects, because today and tomorrow it will be about gas energy, maybe only in 30 or 40 years we will have other safe sources in producing clean energy. I think that investing in gas today can help the country in a few years to achieve this goal,” said Marco Morgado.

The experts were speaking during the second session of the afternoon conference on the panel on Oil and Gas: Sustainable Investment in the Oil and Gas Sector and the Challenges of Energy Transition, which is taking place on its first day.

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