The developers of the Redstone Concentrated Solar Power (CSP) project in South Africa have made the first loan repayment after borrowing $770 million from various development banks and private investors.
Fundraising was facilitated by African development bank (AfDB) on behalf of the project sponsors, Saudi Independent Power Producer (IPP) Power AcwaSouth African Pelé Green Energy, Central Energy Fundand the local community.
The AfDB has allocated more than US$152 million to the Northern Cape project, while the rest of the funding is provided by development banks, including the UK. CDC Groupgermany Deutsche Investitions-und Entwicklungsgesellschaft (DEG)the Nederlandse of the Netherlands Financierings-Maatschappij voor Ontwikkelingslanden (FMO)and South Africa Industrial Development Corporation (IDC).
Absa Bank, Investec Bank, Nedbank and Sanlam are among the private investors involved in financing the Redstone Concentrated Solar Power (CSP) project.
Presentation of the Redstone Concentrated Solar Power (CSP) project
The solar thermal project site has been under construction for nine months. Engineering works are over 58% complete, while procurement and construction are over 45% and 6% complete, respectively, according to the AfDB. The foundations of the tower have already been completed, which represents an important stage in the construction. At this rate, the CSP could 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. Power Acwa estimates that the plant will power 200,000 South African homes while mitigating 440 metric tons of CO2 emissions per year.
According to the AfDB, it is the first renewable energy plant in the country to provide ancillary 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 Agreement, which aims to keep global warming to less than 2°C.
Under a 20-year power purchase agreement, output from Redstone will be supplied to the South African utility Eskom (APP).