ACWA Power Achieves Financial Close on 100 MW CSP Plant in South Africa 

ACWA Power has announced the commencement of construction on the 100 MW Redstone CSP project following the achievement of financial close.

ACWA Power, a leading Saudi developer and the lead shareholder in the Redstone concentrated solar power (CSP) plant, has announced the commencement of construction on the 100 MW Redstone project following the achievement of financial close. At ZAR 11.6 billion total investment, the Redstone project is the largest renewable energy investment in South Africa to date.

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 Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Investec Bank and Sanlam Life Insurance.

Through the successful mobilisation of international project finance, Redstone CSP has facilitated approximately ZAR 7 billion in foreign direct investment to fund and support the strategic energy transition goals of the country. ACWA Power’s co-shareholders in the project include the Central Energy Fund, Pele Green Energy and the local community.

Located in the Northern Cape Province of South Africa, the Redstone plant will be equipped with a 12-hour thermal storage system that will deliver clean and reliable electricity to households in the region round the clock. Commencement of operations is scheduled for Q4 2023.

“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 budding record in South Africa, being the largest renewable energy investment to date. As grid links are improved, the ingenuity of the private sector together with the great support of experienced finance partners has the potential to spark lasting impact for local communities and address the threats of climate change,” said Paddy Padmanathan, President & CEO of ACWA Power.

Recently, the firm had signed an implementation agreement with the Ministry of Investments & Foreign Trade and the Ministry of Energy of Uzbekistan for the development, construction and operation of a 1500 MW wind power project in Karakalpakstan, Uzbekistan. Once operational, the project will become the largest wind farm in the Central Asian region, and one of the largest in the world.