PSPF Looks to Invest in Hydropower Station & Solar Plant

By Ntokozo Nkambule

The Public Service Pensions Fund (PSPF) Chief Executive Officer Masotja Vilakati says they are looking into investing in a hydropower station & solar plant.

The CEO disclosed this during the inaugural Eswatini Energy Indaba which was held at the Happy Valley Hotel over two weeks ago.

The Indaba was organized by SNG Grant Thornton in collaboration with the Ministry of Tourism & Environmental Affairs, the United Nations Development Programme (UNDP Eswatini), Eswatini Stock Exchange, Financial Services Regulatory Authority (FSRA), Central Bank of Eswatini, among a number of other government and private sector entities.

“We are in the process of looking at the possibility of investing in a hydropower station and we are also in conversations of investing in a solar plant. It is important for us to clarify that any investment proposal that we receive goes through our ESG guidelines, and we are thorough when conducting such investment assessments.”

According to Science Direct; a website that provides access to a large bibliographic database on scientific and medical publications- a hydroelectric power station is a renewable source of energy that generates power by using a dam or diversion structure to alter the natural flow of a river or other body of water.

The advantages of hydro power plant include 

·        Water is available throughout the year

·        Operational and maintenance cost is lower than other power plants

·        The cost of fuel is nil

·        Hydro Plants are made for multiple purposes

·        The requirement of working staff is less. The cost of expenses is lower as compared to other plants

Disadvantages of hydro power

·        Embankment construction cost is high

·        Land space requirement for set up is large

·        Water must be abundant to continue the process

·        Aquatic life is affected

·        Embankment areas need to be evacuated for floodplain

A solar power plant on the other hand is a facility that converts solar radiation, made up of light, heat, and ultraviolet radiation, into electricity suitable to be supplied to homes and industries.

The Fund did not disclose when these investments will take place but stated that there are a number of processes that must take place before any investment receives the green light.

He, however, reiterated that as a Fund they will certainly be playing a major role in green and climate friendly initiatives, but what will be key for them is that those projects meet their ESG guidelines.

“PSPF like any other organization will have to play a significant role in climate friendly initiatives. It is for that reason that over three years ago we reviewed our 

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