Saudi-based ACWA Power, an investor and operator of power generation and water desalination plants, has announced the start of construction on the 100MW Redstone solar thermal project in South Africa following financial close.
At ZAR11.6 billion ($830 million) total investment, the Redstone project is the largest renewable energy investment in South Africa to date.
The project has secured financing from international and South African financial institutions and has facilitated approximately ZAR7 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 nearly 200,000 households round the clock. Commencement of operations is scheduled for the fourth quarter of 2023.
Paddy Padmanathan (pictured above), president and CEO of ACWA Power, said: “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.”
He said Redstone CSP will displace an estimated 440 metric tons of CO2 emissions per year. It will also create more than 2,000 construction jobs at peak, with approximately 100 permanent direct jobs during the operating period.
ACWA Power is currently present in 13 countries in the Middle East, Africa, Central Asia and Southeast Asia and its portfolio includes 62 assets with an investment value of $65 billion.
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