- Acwa Power has finished the financing phase of the Redstone concentrated solar power plant (CSP).
- The IPP has raised R7 billion (almost $500 million) for the project.
- Acwa Power plans to bring the facility online by Q4 2023; the 100 MW plant will provide energy for about 200 000 South African homes.
Saudi Arabian independent power producer (IPP) Acwa Power has finished the Redstone concentrated solar power plant (CSP). The company has announced that it will commence the construction phase of the 100MW facility, which will be located in South Africa’s Northern Cape province. The project concession was awarded to Acwa power in 2015 under the Renewable Energy Independent Power Producer Procurement Programme (REIPPP).
Read also: ENGIE Acquires 100 MW Concentrated Solar Power Plant in South Africa.
Acwa Power rased R7 billion (almost $500 million) for the project from the African Development Bank (AfDB), Absa Bank, Development Bank of Southern Africa (DBSA), CDC Group, Nedbank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Investec Bank and Sanlam Life Insurance. The project will however require total investment of R11.6 billion (about $828.4 million).
The CSP plant will comprise a two-tank direct molten salt storage system capable of storing energy for 12 hours. This is equivalent to about 1,200 MWh of electricity generation. Acwa Power plans to bring the facility online by Q4 2023. The generated powers will be sold to state utility company Eskom under a 20-year power contract (PPA). The 100 MW plant will provide energy for about 200 000 South African homes.
According to Acwa Power, the Redstone CSP will displace approximately 440 metric tonnes of CO2 emissions per year.