Page 9 - AfrElec Week 10 2021

AfrElec RENEWABLES AfrElec

ENGIE takes majority stake

in SA’s Xina Solar One

SAOUTH AFRICA ENGIE has acquired a 40% stake in Xina Solar “With the acquisition of this project, ENGIE
One, a 100-MW concentrated solar power (CSP) is pursuing its low-carbon strategy. Xina aug-
plant, from Spain’s insolvent engineering com- ments the country’s installed peaking power
pany Abengoa, as well as 46% of the operations and reduces its dependence on coal-fired elec-
& maintenance company. tricity. The 100-MW CSP plant also contrib-
The plant is equipped with parabolic trough utes to ENGIE’s geographic rationalisation by
technology and a molten salt storage system that expanding its footprint in South Africa, where it
allows for 5.5 hours of energy storage to provide is the leading [IPP] with 1,320 MW of installed
reliable electricity during peak demand. capacity.” says Sébastien Arbola, CEO of ENGIE
Power is contracted through a 20-year power MESCATA.
purchase agreement (PPA) with Eskom. Mohamed Hoosen, CEO of ENGIE South-
The deal leaves ENGIE as the majority share- ern Africa, commented: “ENGIE is valued as a
holder in the plant. Abengoa will still have a 46% highly skilled IPP and a long-term player in the
stake in the O&M company. South African power industry. We are adding
Abengoa said the deal is part of its asset an innovative high-performing plant and are
divestment plan it is undertaking to focus on increasing our CSP capacity. This investment
the engineering, procurement and construction will create value over the longer term while
(EPC) segment. The company will use proceeds accelerating impact on the energy transition of
from the sale to repay its debt, which amounts our customers.”
to €7.9bn. Co-shareholders on Xina Solar One include
Xina Solar One supplies clean energy to Public Investment Corp., a pension fund man-
more than 95,000 South African households ager and a shareholder on ENGIE’s Kathu project
and prevents the emission into the atmosphere (20%); Industrial Development Corp., a devel-
of approximately 348,000 tonnes per year (tpy) opment finance institution wholly owned by the
of CO2. South African Government (20%); and Xina
The plant is located in the Northern Cape Community Trust, funded by the IDC (20%).
of South Africa, which is also the location of Xina Solar One, which started commercial
ENGIE’s 100-MW Kathu CSP plant. operation in August 2017, was built by Abengoa.
Xina Solar One increases ENGIE’s renewable In South Africa, ENGIE has interests in a CSP
footprint and is a further step to cementing its plant (100-MW Kathu), a wind farm (94-MW
position as the leading independent power pro- Aurora), two solar photovoltaic plants (21-MW)
ducer (IPP) in the country. and two thermal power peaking plants (670-
Synergies between Xina and Kathu will be MW Avon and 335-MW Dedisa).™
developed to further enhance the operational
efficiency of both plants.

Week 10 11•March•2021 www. NEWSBASE .com P9