The Redstone Concentrated Solar Power (CSP) project developers in South Africa have made the first loan repayment after borrowing US$ 770M from a variety of development banks and private investors.
The monies mobilization was facilitated by African Development Bank (AfDB) on behalf of the project’s developers, Saudi Arabian independent power producer (IPP) Acwa Power, South African Pele Green Energy, Central Energy Fund, and the local community.
The AfDB has allocated more than US$ 152M to the Northern Cape project while the remainder of the funding is provided by development banks, including the UK’s CDC Group, Germany’s Deutsche Investitions-und Entwicklungsgesellschaft (DEG), the Netherlands’ Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), and South Africa’s Industrial Development Corporation (IDC).
Absa Bank, Investec Bank, Nedbank, and Sanlam are among the private investors involved in the funding of the Redstone Concentrated Solar Power (CSP) project.
Overview of the Redstone Concentrated Solar Power (CSP) project
The solar thermal project site has been under construction for nine months. Engineering work is more than 58% complete, while procurement and construction are more than 45% and 6% complete, respectively, according to the AfDB. The tower’s foundation has already been completed, representing a significant construction milestone. At this rate, the PSC might be operational in the fourth quarter of 2023.
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The Redstone Concentrated Solar Power (CSP) power plant will have a capacity of 100 MW and a storage capacity of 12 hours. Acwa Power believes that the plant will power 200,000 South African homes while mitigating 440 metric tonnes of CO2 emissions annually.
According to AfDB, this is the country’s first renewable energy plant to provide auxiliary services. The initiative has been verified by the Climate Bonds Standard and Certification Scheme and is in line with the goals of the Paris climate accord, which aims to keep global warming to less than 2°C.
Under a 20-year power purchase agreement, Redstone’s production will be supplied to South Africa’s state-owned utility Eskom (PPA).