CDC Group (“CDC”), the UK’s development finance institution (DFI) and impact investor, has announced a US$ 50M project finance direct debt investment to Redstone Concentrated Solar Power (CSP) project in South Africa.
The project is also supported by other investors such as the African Development Bank (AfDB), Absa Bank, Development Bank of Southern Africa (DBSA), Nedbank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Investec Bank, Sanlam Life Insurance, Pele Green Energy, the Government-owned Central Energy Fund, and a Community Trust aimed at benefitting the immediate area of the project.
The lender partnership has resulted in an investment of approximately US$ 800M in the Redstone Project, making it one of the largest project finance deals ever done in the Southern Africa Country.
About the Redstone Project
The Redstone concentrated solar power project is being developed by a consortium of SolarReserve-a leading energy solution provider in Africa, and ACWA Power-a developer, investor, and operator of power generation and desalinated water production plants, on a 648 hectares piece of land in the Humansrus Solar Park located towards the east of Postmasburg, Northern Cape Province.
The 100MW project has a 250m-tall central receiver tower with a 12-hour full-load energy storage capacity that allows for the storage of heat energy harvested from the sun. The tower employs ThermaVault technology which combines solar thermal technology with molten salt energy storage technology. This feature enables energy dispatch after sunset and provides energy supply during peak demand periods, helping to prevent power interruptions and load shedding.
Upon completion, the project will provide approximately 200,000 South African households with clean and reliable energy and help to offset around 480,000 tons of carbon per year – equivalent to the per capita emissions of 67,000 South Africans.