Acwa Power reaches financial close for South African solar project
Saudi Arabia’s Acwa Power has reached financial close for the 100MW Redstone concentrated solar power (CSP) independent power producer (IPP) project in South Africa, marking the largest investment in South Africa’s renewables sector to date
Saudi Arabia’s Acwa Power has reached financial close for the 100MW Redstone concentrated solar power (CSP) independent power producer (IPP) project in South Africa, marking the largest investment in South Africa’s renewables sector to date.
The ZAR11.6bn ($828m) Redstone project secured financing from local and international financial institutions including : 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.
The Redstone CSP project has facilitated ZAR7bn in foreign direct investment to support South Africa’s strategic energy transition goals.
Acwa Power’s co-shreholders in the project include the Central Energy Fund, Pele Green Energy and the local community.
The Redstone IPP will be developed with a 12-hour thermal storage system that will enable the dispatch of electricity in the evening. The project is expected to reach commercial operation in the fourth quarter of 2023.
“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 aligned with the goals of the Paris Climate Agreement which seeks to limit global warming to under 2 degrees Celsius.
In addition to efficiently delivering clean energy to the national grid, the Redstone project will also offer tangible socioeconomic value through offering job opportunities and utilising 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 from the local community; and create approximately 100 permanent direct jobs during the operating period,” Rajit Nanda, chief portfolio management officer and acting CIO, Acwa Power, was quoted in a press release following the financial close.
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