Renergen impairs hydro project to focus on South African natural gas market

Integrated alternative energy business Renergen impaired its R12.2-million Côte d’Ivoire Hydro hydroelectric project, which was managed by its subsidiary, Mega Power Renewables, during the 2018 financial year and shifted its focus to the South African natural gas market. The impairment decision was taken after studies revealed that the electricity tariff required to deliver reasonable investment returns from the hydroelectricity project to Renergen were above the norm, and that the company would benefit more from deploying that investment to developing Tetra4’s Evander gasfield, as well as bringing a second operation online.