Saudi Power Plant Company ACWA Power Is Set To Build A Solar Plant In South Africa
Saudi Power Plant Company ACWA Power Is Set To Build A Solar Plant In South Africa. ACWA Power has finally confirmed financial close at R11.6 billion to construct the Redstone Concentrated Solar Power (CSP) plant in the Northern Cape. This comes six years after its bid was approved by South Africa’s Department of Energy.
According to Business Insider, the construction of the Redstone CSP, which has attracted the largest renewable energy investment in South Africa to date, was due to begin in 2016 but was delayed due to complications with Eskom. In 2018, the purchase power agreement (PPA), which was reportedly worth around R50 billion for a 20-year contract, was signed by Eskom. On Monday, ACWA confirmed that it had secured financing from several local and international funders, including the African Development Bank (AfDB), ABSA, Investec, Nedbank, and Sanlam. The Redstone CSP project is due to come online in the fourth quarter of 2023.
Redstone, located near Postmasburg, approximately 170 km east of Upington, will cover 648 hectares and produce 100 MW of energy, double the supply of the Bokpoort CSP. The project is expected to power some 200,000 households and create more than 2,000 jobs during the peak of its construction phase.
“Redstone CSP will displace an estimated 440 metric tons of carbon dioxide emissions per year. The project is certified under the Climate Bonds Standard and Certification Scheme and aligned with the goals of the Paris Climate Agreement which seeks to limit global warming to under 2 degrees Celsius.” ACWA Power told Business Insider.
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 10 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions.
ACWA Power’s portfolio, with an investment value in excess of USD 33 billion, can generate more than 22 GW of power and produce 2.5 million m3/day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models (BOO/BOOT).
