OPIC Partners with SolarReserve and ACWA Power to Develop Landmark South African Solar Energy Facility
October 20, 2015
(OPIC)
WASHINGTON –As part of Secretary John Kerry’s Climate and Clean Energy Investment
Forum, the Overseas Private Investment Corporation (OPIC) today signed an
agreement with U.S. based energy developer SolarReserve and Saudi Arabia-based
ACWA Power, recognizing
OPIC’s $400 million commitment of debt financing to support the development of
the Redstone Concentrating Solar Power (CSP) project in Northern Cape, South
Africa.
The Redstone project is a 100 megawatt (MW) clean energy facility that will be
connected to the South African national grid. Using SolarReserve’s cutting-edge
CSP technology, Redstone’s molten salt storage capability will deliver
consistent baseload electricity, even after the sun sets. This is a critical
development in a country where frequent power outages have been cited as an
obstacle to economic growth.
OPIC support to the Redstone project is also a significant milestone for
President Obama’s Power Africa initiative, of which OPIC is a key contributor.
Power Africa aims to bring new power access to the more than 600 million
sub-Saharan Africans currently living without energy access.
“The development of the Redstone project will benefit the South African people,
the international clean energy sector, and the role of U.S. leadership in
emerging market development,” said Elizabeth Littlefield, OPIC’s President and
CEO. “It’s impressive that Redstone brings together the innovative U.S. private
sector leadership and technology of SolarReserve, the international experience
of ACWA Power, and large-scale catalytic financing from OPIC. This sort of
change-making partnership is at the heart of President Obama’s Power Africa
initiative and creates broad, lasting impact in international development.”
“The Redstone project marks an important technology advancement for Africa in
clean, renewable power, and a demonstration of U.S. developed technology that is
leading the world in large scale solar energy storage,” said SolarReserve’s CEO
Kevin Smith. “In addition, the project’s delivered electricity price is the
lowest of any CSP project in the country to date,” Smith added. “We appreciate
OPIC’s support and look forward to working with our partner ACWA Power and the
communities where the project is located to help South Africa at a time when it
critically needs new generation to support growth of its economy.”
“The Redstone CSP Project, ACWA Power’s 2nd project in South Africa, delivers
dispatchable power at the most competitive tariff offered in its Renewable
Energy Independent Power Producer Procurement Programme (REIPPPP) program to
date for CSP technology, while maximizing value retention in not only the South
African economy, but also within the local economy in the project vicinity.
Quite apart from the socio-economic contribution this project will make to South
Africa, the first time deployment of CSP Tower technology in the country using a
project finance framework, which was made possible by the galvanizing leadership
of OPIC financing, will enable this very important clean energy technology to be
deployed at scale and at a faster pace than otherwise would have been possible,”
said Paddy Padmanathan, President and CEO of ACWA Power.
OPIC’s financing to the Redstone project helps fulfill both the U.S. commitment
to clean energy in the developing world as well as South Africa’s own goals
through their Renewable Energy Independent Power Producer Procurement Programme
(REIPPPP), which aims to add 3,725 MW of clean power to South Africa’s energy
generation mix.
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