The South Africa Department of Energy (DOE) has awarded the 100 megawatt (MW) Redstone Solar Thermal Power project to a consortium composed by SolarReserve and ACWA Power.
The project is part of the DOE's Round 3 (CSP) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The Redstone Solar Thermal Power project, which had the lowest tariff bid to date from any CSP project in the country, is scheduled to achieve financial close later in 2015 and commence operations in early 2018.
The Redstone Solar Thermal Power Project features SolarReserve's world-leading molten salt energy storage technology in a tower configuration with the capability to support South Africa's demand for energy when it's needed most - day and night.
The 100 MW project with 12 hours of full-load energy storage will be able to reliably deliver a stable electricity supply to more than 200,000 South African homes during peak demand periods, even well after the sun has set.
The total project investment is estimated at R8 billion (US$691.8 million). R2.4 billion of equity investment and R5.6 billion of debt provided by local and international lending institutions including DFIs
The Redstone Solar Thermal Power project will be located in Postmasburg, near Kimberley in the Northern Cape Province, adjacent to the 75 MW Lesedi and 96 MW Jasper photovoltaic (PV) solar power projects successfully developed by SolarReserve and its investment partners. Together, the three projects comprise the world's first combined CSP and PV solar park with a total of 271 MW of generating capacity.
The tax revenue forecast contribution for the Redstone project is estimated to be in excess of R6 billion in income tax over the first 20 years of operation.