IPPToday #324: AfDB approves financing for US$800 million CSP project in South Africa
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The African Development Bank (AfDB) has announced that its Board of Directors has approved a senior loan of ZAR3 billion (US$228.6 million) to the 100 MW Redstone Concentrated Solar Power (CSP) Project. The total cost of the project is US$789 million.
Located in the Humansrus Solar Park, Northern Cape Province of South Africa, the project comprises the development of a 12-hour molten salt thermal energy storage system and the construction of a new 132 kV switching station and a 34 km long single circuit 132 kV transmission line.
The system is expected to generate 466 GWh/year and meet peak electricity demand in the absence of sun, and allow for dispatchability to adapt generation to electricity demand. It will offset diesel-fueled Open Cycle Gas Turbine’s (OCGT’s) operating at peak demand, thereby avoiding and mitigating carbon dioxide (CO₂) emissions from fossil fuels.
The project will also improve South Africa’s power supply and access to energy, and green the energy mix which is currently dominated by coal at 82%.
Majority owned by ACWA Power, the project was awarded a power purchase agreement (PPAs) under the Department Of Energy's Renewable Energy Independent Power Producer Procurement (REIPPP) Programme.
The programme mandates the project to fulfil certain social development requirements on citizens employed, Black Economic Empowerment, procurement from small and medium-scale enterprises, local content, and shareholding by local communities.