Construction has begun on the ZAR 11.6 billion Redstone concentrated solar power (CSP) plant in the Northern Cape. This marks the largest renewable energy investment in South Africa to date. The 100 MW project is scheduled to reach commercial operation in Q4 2023.
ACWA Power was also instrumental in the development of the Bokpoort CSP plant in the Northern Cape.
ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants in 13 countries, is the lead shareholder in the Redstone CSP plant. The project has secured financing from leading international and South African financial institutions including the African Development Bank (AfDB), ABSA Bank, Development Bank of Southern Africa (DBSA), CDC Group, Nedbank Limited, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions-und Entwicklungsgesellschaft (DEG), Investec Bank and Sanlam Life Insurance.
Through the successful mobilisation of international project finance, Redstone CSP has facilitated some ZAR 7 billion in foreign direct investment to fund and support South Africa’s strategic energy transition goals. ACWA Power’s co-shareholders in the project include the Central Energy Fund, Pele Green Energy and the local community.
The Redstone plant will be equipped with a 12-hour thermal storage system that will deliver clean and reliable electricity to nearly 200 000 households round the clock.
“ACWA Power is proud to lead the energy transition in countries that are committed to ambitious renewable energy targets, to support economic growth and social development. Redstone CSP adds another superlative to our budding record in South Africa, being the largest renewable energy investment to date. As grid links are improved, the ingenuity of the private sector together with the support of experienced finance partners has the potential to spark lasting impact for local communities and address the threats of climate change,” said Paddy Padmanathan, President & CEO of ACWA Power.
Rajit Nanda, Chief Portfolio Management Officer and Acting Chief Investment Officer of ACWA Power, said, “We are proud to play a key role in supporting South Africa’s decarbonisation efforts, and are grateful to our partners for contributing to our mission to deliver power and desalinated water reliably and responsibly at an affordable cost. Following the record-breaking Bokpoort CSP and deploying the same thermal salt storage system, Redstone CSP is set to be another ACWA Power flagship project in South Africa that directly benefits households in the area.”
Redstone CSP will displace an estimated 440 metric tons of CO2 emissions per year. The project is certified under the Climate Bonds Standard and Certification Scheme and is aligned with the goals of the Paris Climate Agreement which seeks to limit global warming to less than 2°C.
Developed within South Africa’s REIPPP Programme, in addition to delivering clean energy to the national grid efficiently, the Redstone project will offer real socioeconomic value by offering job opportunities and using local supply chains. The project will reach close to 44% local content on procurement during the construction period; create more than 2 000 construction jobs at peak, with about 400 within the local community; and create about 100 permanent direct jobs during the operating period.
As part of its implicit social contract, Redstone CSP will provide value-adding ancillary services required by the system operator at no cost to the public utility Eskom, which marks a first for a renewable energy plant in the country.
For more information visit: www.acwapower.com/en