Page 16 - AfrElec Week 23 2022

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DBSA provides $125mn to 100-

MW solar plant in South Africa

SOUTH AFRICA THE Development Bank of Southern Africa mobilisation of international project finance,
(DBSA) has committed ZAR1.91bn ($125mn) Redstone CSP has facilitated approximately
in loan and equity-linked funding to South Afri- R7bn [$458mn] in foreign direct investment to
ca’s largest renewable energy investment, a 100- fund and support the strategic energy transition
MW solar thermal power plant that is being built goals of the country.”
in the country’s Northern Cape Province. According to the statement, Redstone CSP
In a recent press release, the financial insti- will offset an estimated 440 tonnes of carbon
tution – which is owned by the South African dioxide emissions annually, while also providing
government – said its support to the Redstone value-adding ancillary services to power utility
CSP (concentrated solar power) project com- Eskom – and is in fact the first renewable energy
prises ZAR1.5bn in senior debt and ZAR410mn project to offer such services in South Africa.
in equity-linked funding. The project is certified under the Climate
SR Energy, a provider of energy solutions in Bonds Standard and Certification Scheme
Africa that is based in Johannesburg, South Afri- and aligned with the goals of the Paris Climate
ca’s commercial capital, is building the project, Agreement, which seek to limit global warming
which is said by DBSA to involve a total invest- to under 2 degrees Celsius.
ment of ZAR11.6bn ($759mn). In addition to efficiently delivering clean
CSP – also known as solar thermal power energy to the national grid, the Redstone project
– is a technology that uses an array of mirrors will also offer tangible socio-economic value by
to focus sunlight onto a receiver containing offering job opportunities and utilising local
high-temperature fluid (in this case at the top supply chains, with 44% local procurement and
of a tower). The heat from the fluid can be used a peak of over 2,000 jobs during the construction
to generate electricity, via either a turbine or an period, said DBSA. It will create about 100 per-
engine. manent jobs during its operating period.
On completion, which is likely in the final “The construction for the project is well
quarter of 2023, Redstone would power 200,000 underway and is currently in the ninth month,”
households in a country that experiences pro- DBSA said.
longed power cuts due to the inefficiency of its “The engineering works for the project is
ageing coal-fired plants. over 58% complete, whereas procurement and
The Redstone project “will be equipped with a construction work stand at over 45% and 6%
12-hour thermal storage system that will deliver respectively. The tower foundation – a key con-
clean and reliable electricity to nearly 200,000 struction milestone for the project – has already
households round the clock,” says the DBSA. been completed.”™
“Commencement of operations is sched-
uled for Q4 2023. Through the successful

P16 www. NEWSBASE .com Week 23 09•June•2022