South Africa’s largest renewable energy project Redstone concentrated solar power (CSP) achieves its first debt drawdown

The largest renewable energy project in South Africa, Redstone Concentrated Solar Power (CSP) has drawn down its first debt. The ZAR 11.6billion investment secured financing from a couple of leading international and domestic financial institutions. The African Development Bank who committed financing worth over ZAR 2.306 billion to the transaction served as the Mandated Lead Arranger (MLA). Other institutional investors

include BSA Bank, CDC Group, Development Bank of Southern Africa (DBSA), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) Investec Bank, Nedbank Limited, Sanlam Limited, and the Industrial Development Corporation of South Africa.

The Redstone project which will be equipped with a 2-hour thermal storage system is expected to deliver clean and dependable electricity to about 200,000 households. Nine months into construction, significant progress is being recorded on the Project as its engineering is over 58% completed. However, procurement and construction efforts stand at 45% and 6%, respectively.

The project will wipe out an estimated 440 metric tons of CO2 emissions per year, while also offering value-adding support services to Eskom. The Project aligns with the Paris Climate Agreements, AfDB's Climate Change & Green Growth Policy and Strategy. Also, it will utilize local supply chains, thereby creating over 2000 construction jobs at peak with almost 400 local residents and about 100 permanent direct jobs when it becomes fully operational.