DBSA announced the first debt drawdown for Redstone CSP
The Development Bank of Southern Africa has announced that the Redstone Concentrated Solar Power Project has completed its first debt drawdown.
The Redstone Concentrated Solar Power (CSP) project, located in the Northern Cape Province of South Africa, is the largest renewable energy project in South Africa. This is according to the Development Bank of Southern Africa (DBSA). It is estimated to cost ZAR 11.6 billion, or about $800 million, according to the African Development Bank (AfDB).
According to the DBSA and the AfDB‘s reports, Redstone will provide 200,000 South African households with clean, reliable electricity from the third quarter of 2023. The project will offset approximately 440 metric tonnes of CO2 emissions per year.
“The project aims to add 100 MW of new, reliable, dispatchable solar energy generation capacity. Thus, closing the energy supply gap, reducing dependence on coal, saving carbon emissions, generating local employment, and building a domestic solar power industry.” African Development Bank
According to a study by the Council for Scientific and Industrial Research (CSIR), scheduled power cuts by Eskom have cost the South African economy at least ZAR 338 billion (~$23 billion) over the past decade.
In addition to closing the energy gap, this project contributes to the Paris Climate Change Agreement’s goal of limiting global warming (DBSA). It will also contribute to SDG 7 on affordable, reliable and clean energy by 2030.
The principal shareholders are Arabian Company for Water and Power Development (ACWA Power) and the DBSA, Central Energy Fund, Pele Green Energy and the local community (DBSA).
For more information on this project or other renewable power projects in Africa, please contact us here.