100 MW Redstone Solar with 12 Hours Daily Thermal Energy Storage Closes Financing
ACWA Power has closed South Africa’s largest renewable energy project, Redstone CSP, to a financial close
The Concentrated Solar Power (CSP) facility in Redstone, valued at ZAR 11.6 billion, will supply 200,000 households with electricity when completed
Commercial operations are scheduled to begin in the 4th quarter of 2023
Johannesburg, South Africa, May 10, 2021:
ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants in 13 countries and major shareholder of the Redstone Concentrated Solar Power Plant (CSP), announced the start of construction on the 100 MW Redstone project following the financial close.
With a total investment of ZAR 11.6 billion, the Redstone project in the Northern Cape Province of South Africa is the largest ever investment in renewable energy in South Africa. The project has secured financing from leading international and South African financial institutions, including African Development Bank (AfDB), ABSA Bank, Development Bank of Southern Africa (DBSA), CDC Group, Nedbank Limited, Nederlandse FinancieringsMaatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions- und Development Company (DEG), Investec Bank and Sanlam Life Insurance.
By successfully mobilizing international project finance, Redstone CSP has enabled foreign direct investments of around ZAR 7 billion to finance and support the country’s strategic goals for the energy transition. 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 heat storage system that will provide clean and reliable electricity to almost 200,000 households around the clock. The start of operations is planned for the fourth quarter of 2023.
Commenting on the occasion, Paddy Padmanathan, President and Chief Executive Officer of ACWA Power, said: “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 soaring record in South Africa and is the largest investment in renewable energy to date. If network connections are improved, the ingenuity of the private sector combined with the great support of seasoned financial partners has the potential to have a lasting impact on local communities and address the threats of climate change. “
Mr. Rajit Nanda, Chief Portfolio Management Officer and Acting CIO at ACWA Power, added, “We are proud to play a key role in supporting South Africa’s decarbonization efforts and we are grateful to our partners for contributing to our mission to be reliable and Responsible results delivering electricity and desalinated water at an affordable price. Following in the footsteps of the record-breaking Bokpoort CSP and using the same thermal salt storage system, Redstone CSP will be another flagship project from ACWA Power in South Africa, which will directly benefit households in the region with remarkable plant performance. “
Redstone CSP is estimated to displace 440 tons of CO2 emissions per year. The project is certified according to the Climate Bonds Standard and Certification Scheme and is based on the goals of the Paris Climate Agreement, which aims to limit global warming to below 2 degrees Celsius. In addition to efficiently delivering clean energy to the national grid, the Redstone project will also offer tangible socio-economic value by providing employment opportunities and leveraging local supply chains. The project will achieve almost 44% local content in procurement during the construction period; Creation of more than 2,000 peak construction jobs, including approximately 400 from the local community; and create approx. 100 permanent direct jobs during the operating time. As part of its implicit articles of association, Redstone CSP will provide local public utility Eskom with free value added services required by the grid operator, a first for a renewable energy facility in the country.
About Redstone CSP ACWA Power SolarReserve Redstone Solar Thermal Power Plant (RF) (Pty) Ltd is a purpose-built project company whose main shareholders are ACWA Power Redstone Holdings and other shareholders of the Central Energy Fund, Pele Green Energy and Humansrus Community Trust. Initial work began in February 2021 under an LNTP agreement with an NTP for full construction, which was issued on April 30, 2021. The planned COD is October 31, 2023.
About ACWA Power ACWA Power is a developer, investor and operator of power generation and desalination water production plants. Registered and founded in 2004 in Riyadh, Saudi Arabia; ACWA Power employs around 3,500 people and is currently present in 13 countries in the Middle East, Africa, Central Asia and Southeast Asia. ACWA Power’s portfolio includes 62 assets valued at $ 65 billion, producing 42 GW of electricity and 5.8 million m3 / day of desalinated water that is delivered in bulk to meet the needs of government utilities and industries over the long term to cover contracts in the context of utility services outsourcing and public-private partnership models. ACWA Power’s mission is to provide reliable electricity and desalinated water at low costs and thus to contribute effectively to the sustainable, social and economic development of communities and countries. ACWA Power is committed to the values of safety, employees and performance when it comes to doing business in all regions. More information is available at www.acwapower.com.