South Africa is highly dependent on coal to meet its energy needs. Cape Town-based Open Access Energy wants to support the country’s transition to greener fuel sources by linking independent renewable energy producers into the national grid. The three-year-old company’s software connects power producers, consumers, municipalities and property owners.
Open Energy Access secured a $750,000 investment from Colorado-based impact tech investor Factor[e] Ventures. It’s aiming to raise $1.5 million for its seed round.
“As we strive to decentralize energy and ensure universal access to clean power for all South Africans, this support will accelerate our innovation capabilities and market reach,” said Open Energy Access’s Gerjo Hoffman.
Green stagnation
More than 70% of South Africa’s electricity is produced from coal; just 7% comes from renewable sources. Hours-long daily rolling blackouts have afflicted the country for years.
The South African government has stalled on the transition to cleaner energy. The coalition government formed after elections in June has added to the uncertainty.
Hoffman said Open Energy Access’s investment comes “at a crucial juncture for the company and South Africa’s energy sector.”
