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AfrElec RENEWABLES AfrElec
ACWA Power begins construction of
100-MW Redstone CSP project
SOUTH AFRICA SAUDI Arabia’s ACWA Power has announced to spark lasting impact for local communities
the start of construction at the 100-MW Red- and address the threats of climate change,” said
stone CSP project in South Africa after reaching Paddy Padmanathan, ACWA Power CEO.
financial close. Located in the Northern Cape Province of
The ZAR11.6bn ($162.5mn) Redstone pro- South Africa, the plant will be equipped with a
ject is the largest renewable energy investment 12-hour thermal storage system that will deliver
in South Africa to date. clean and reliable electricity to nearly 200,000
Redstone CSP has facilitated ZAR7bn households round the clock.
($98mn) in foreign direct investment (FDI) to Commencement of operations is scheduled
fund and support the strategic energy transition for Q4 2023.
goals of the country. Rajit Nanda, chief portfolio management
ACWA Power’s co-shareholders in the project officer and acting CIO for ACWA Power, added:
include the Central Energy Fund, independent “We are proud to play a key role in supporting
power producer (IPP) Pele Green Energy and the South Africa’s decarbonisation efforts, and are
local community. grateful to our partners for contributing to our
South Africa is keen to take advantage of mission to reliably and responsibly deliver power
its solar potential and, and concentrated solar and desalinated water at an affordable cost. Fol-
power (CSP) is a key technology. Pele Green lowing in the footsteps of the record-breaking
Energy is a black-owned company, and the South Bokpoort CSP and deploying the same thermal
African government is aiming to foster black salt storage system, Redstone CSP… [will bene-
investment in renewable energy. fit] households in the area with remarkable plant
The project has secured financing from lead- performance.”
ing international and South African financial The project will achieve close to 44% local
institutions, including the African Develop- content on procurement during the construction
ment Bank (AfDB), ABSA Bank, Development period; create more than 2,000 construction jobs
Bank of Southern Africa (DBSA), CDC Group, at peak, with about 400 from the local commu-
Nedbank Limited, Nederlandse Financier- nity; and create approximately 100 permanent
ingsMaatschappij voor Ontwikkelingslanden direct jobs during the operating period.
(FMO), Deutsche Investitions- und Entwick- As part of its implicit social contract, Red-
lungsgesellschaft (DEG), Investec Bank and stone CSP will provide value-adding ancillary
Sanlam Life Insurance. services required by the system operator at no
“As grid links are improved, the ingenuity of cost to the local public utility Eskom, which
the private sector together with the great support marks a first for a renewable energy plant in the
of experienced finance partners has the potential country.
P8 www. NEWSBASE .com Week 19 13•May•2021
