OPIC Partners to Develop S. African Energy Facility

The Overseas Private Investment Corporation (OPIC) has  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 billed as 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 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.