New GX Capital CEO outlines plans to power the continent with renewables

Powering the continent of Africa has long been a critical issue, with the lack of reliable electricity hindering growth and development across the region. However, renewable energy is emerging as a viable solution to address both the energy deficit and environmental concerns. In a recent interview with CNBC Africa, Khudusela Pitje, CEO of New GX Capital, discussed the company's plans to revolutionize the energy sector on the continent. New GX Capital recently made a significant investment in SPS investments, a company with a commercial and industrial solar portfolio of over 40 megawatts spread across South Africa, Seychelles, Kenya, and Libya. The investment, done in collaboration with Gridworks, a subsidiary of CDC UK, is aimed at catering to corporate clients rather than relying solely on government off-takers. The company's clientele includes data centers, hotels, retailers, and distribution centers, offering hybrid solutions of solar energy and backup batteries. This strategic approach not only provides clean energy but also enhances power security for businesses in the region. Pitje emphasized that corporate attitudes towards investing in cleaner energy sources are shifting, driven by regulatory clarity and the growing demand for sustainable and reliable energy alternatives. The company has ambitious plans to scale up its operations from 40 to 200 megawatts, with a capital expenditure exceeding $40 million in equity and up to $2 billion in debt financing. With strong partnerships with local funding institutions and access to CDC's funding pools, New GX Capital is well-positioned to achieve its expansion targets. Pitje highlighted the support received from banks, citing the increasing interest in clean energy investments and the corporate sector's push towards carbon-neutrality by 2025-2030. When asked about participating in upcoming renewable energy bid windows, Pitje confirmed the company's focus on corporate facilities through SPS investments, with plans to explore opportunities in utility-scale projects and disruptive energy solutions for residential areas. By diversifying its power asset class to cover commercial, industrial, residential, and utility-scale projects, New GX Capital aims to drive industrialization in the power sector and create job opportunities across the continent.