International Funds for Low Carbon Technologies Poised to Facilitate Financing of Clean Energy Projects in Sub-Saharan Africa, Says Frost & Sullivan

CAPE TOWN, South Africa, July 19, 2010 - Two international funds for low carbon technologies focused on developing
countries have been established recently - a technology development fund and
a technology deployment fund. The main objective of these funds is to
capitalise on existing national and international experience to leverage
private capital to assist and support entrepreneurs across sub-Saharan
Africa. These funds essentially create the confidence needed for early stage
technology development and deployment financing and also facilitate a
structure for public-private partnerships.

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New analysis from Frost & Sullivan (www.energy.frost.com),
Financing Clean Energy Projects in Sub-Saharan Africa, finds that the
sub-Saharan African market for clean energy projects has more than US$200.00
million in financing available from private investors. The clean energy
technologies covered in this study are solar energy, wind energy, biomass
power, and small hydropower projects.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"In spite of its potential, the sub-Saharan Africa region is yet to fully
realise the significant prospects to develop renewable energy projects," says
Frost & Sullivan Programme Manager, Cornelis Van der Waal. "The lack of
suitable financing has been one of the key reasons for the slow progress in
the development of the region's renewable energy projects. However, policies
and regulations that enhance public and private sector financing assist in
shifting some of the investment costs away from the investor to the public
sector."

The key challenges to the financing of renewable energy projects in
sub-Saharan Africa countries are a lack of clarity on targets for renewable
energy projects, an underdeveloped policy and regulatory environment and a
dearth of funding for suitable projects.

"Despite the fact that global private equity (PE) and venture capital
(VC) investment grew in 2008, PE investment remains a relatively new asset
class," explains Van der Waal. "Even in countries where investors are
comfortable with PE investments, sustainable investments are unfamiliar,
creating an additional challenge for renewable energy companies seeking to
raise finance."

A combination of private sector investment and government funding will be
the key to ensuring that sufficient capital is available for the financing of
renewable energy projects.

"Governments should use instruments such as subsidies, tax measures,
feed-in or quota schemes to lower investment costs," concludes Van der Waal.

Financing Clean Energy Projects in Sub-Saharan Africa is part of the
Energy & Power Growth Partnership Services programme, which also includes
research in the following markets: Southern African Renewable Energy
Equipment Markets, African Wind Power Market, and Strategic Growth Plans of
Major Power Utilities in Sub Saharan Africa. All research services included
in subscriptions provide detailed market opportunities and industry trends
that have been evaluated following extensive interviews with market
participants.

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    Financing Clean Energy Projects in Sub-Saharan Africa
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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

    www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com