OPIC partners with SolarReserve and ACWA Power to develop a landmark CSP facility in South Africa
As part of Secretary John Kerry's Climate and Clean Energy Investment Forum, the Overseas Private Investment Corporation (OPIC, Washington, U.S.) on October 20th, 2015 signed an agreement with renewable energy developer SolarReserve LLC (Santa Monica, California, U.S.) and CWA Power (Riyadh, Saudi Arabia), recognizing OPIC's USD 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 CSP project is a 100 megawatt (MW) clean energy facility that will be connected to the South African national grid.
Using SolarReserve's 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.
Change-making partnership creates broad, lasting impact in international development “It's impressive that Redstone brings together the innovative U.S. private sector leadership and technology of SolarReserve, the international experience of ACWA, 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.”
World-leading large scale solar energy storage
“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.
The Redstone CSP Project delivers dispatchable power at the most competitive tariff offered in South Africa’s REIPPPP program to date
“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) 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,” 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.