SOUTH AFRICA – CDC Group, the UK’s development finance institution (DFI) and impact investor, has announced a US$50 million project finance direct debt investment to ACWA Power’s Redstone Concentrated Solar Power Project in South Africa.
The project will provide 200,000 South African households with clean and reliable energy and help to offset approximately 480,000 tons of carbon per year, equivalent to the per capita emissions of 67,000 South Africans.
The 100MW project has a 12-hour full-load energy storage capacity which allows for storage of heat energy harvested from the sun and features Redstone’s new technology that enables energy dispatch after sunset and provides energy supply during peak demand periods, helping to prevent power interruptions and load shedding.
“Our investment in Redstone represents our continued objective to support frontier markets in making a just energy transition and back meaningful mitigating action aimed at reducing greenhouse gas emissions”Iain Macaulay – Head of Project Finance, CDC Group
Iain Macaulay, Head of Project Finance at CDC Group, said: “Our investment in the Redstone project signals CDC’s re-entry into the South Africa market on the direct debt side, through a project that uses pioneering technology that will positively transform the country’s energy landscape. On this investment, we have collaborated with investors that can help close the funding gap and deliver sustainable climate infrastructure, to bring reliable and affordable clean power to South Africa. Moreover, the project’s delivery of impact at scale will serve as proof point to commercial investors looking to back future new climate-smart technologies that can support the energy needs of more countries.”
“CDC remains steadfast in our ambition to accelerate investments in renewable power, ensuring greater opportunities for the communities and people in our markets. Our investment in Redstone represents our continued objective to support frontier markets in making a just energy transition and back meaningful mitigating action aimed at reducing greenhouse gas emissions.”
Redstone was procured under the 2011 Renewable Energy Independent Procurement Program (REIPPP), launched by the government of South Africa and it has delivered 102 renewable IPPs totalling 6,400MW, since 2012.