AfDB approves $142m loan to construct concentrated solar project in South Africa
30 June 2014
Power Genration Solar
The African Development Bank (AfDB) has granted a loan of $142m to construct a 100MW concentrated solar power (CSP) plant in South Africa.
The loan, which includes a $41.5m concessional financing from the Clean Technology Fund (CTF), will be used for the construction if XiNa Solar One project in the Northern Cape Province.
Expected to cost $908m, the XiNa Solar One project is located in the Northern Cape Province, South Africa and is the first renewable energy Independent Power Producer (IPP)
AfDB and other financial institutions including three commercial banks in South Africa will finance the senior debt.
Featuring parabolic trough technology, the 100MW CSP plant will generate the electricity using a supe rheated steam cycle that has a 1,650MWh of storage capacity.
The facility is due to be interconnected by the Special Purpose Vehicle (SPV) by a 3km transmission line to a nearby existing substation.
In addition to reducing huge dependence on coal fired power plants for the country, the project will increase access to clean power as well as reduce the peak power generation costs for the nation.
The project, which aligns well with both internal and external policies and strategies, also supports the South Africa Government's energy strategy that plans to diversify the energy sources as specified in the National Integrated Resource Plan (2010 - 2030).
Additionally, the project is aligned with its Country Strategy Paper for South Africa which intends to support the country's infrastructure development in clean energy.