Redstone Renewable Project
On the 4TH April 2018, Eskom signed a long awaited power purchase agreement for the 100MW CSP with ACWA Redstone Project officiated by the Minister of Energy, Mr. Jeff Hadebe.
CEF has an effective 15% shareholding in the project, which amounts to R600 million. The signing of this investment forms part of the CEF’s Vision 2025 strategy to ensure that it plays a meaningful role in the renewable industry.
The first of its kind in Africa, the Redstone Solar Thermal Power Project features SolarReserve’s world-leading molten salt energy storage technology in a tower configuration with the capability to support South Africa’s demand for energy when it’s needed most – day and night.
The 100 MW project with 12 hours of full-load energy storage will be able to reliably deliver a stable electricity supply to more than 200,000 South African homes during peak demand periods, even well after the sun has set. Fueled completely by the sun, with no back up fuel required, the project also features dry cooling of the power generation cycle as an important element to minimize water use.
The project was developed in response to the South Africa Department of Energy’s Round 3 call for CSP projects for the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
With the lowest delivered electricity price of any CSP project in the country to date, the Redstone project will generate more than 480,000 megawatt-hours per year. This annual output is more than twice that of other technologies per MW of capacity, such as photovoltaics (PV) or direct steam solar thermal.
The Redstone Solar Thermal Power Project will be located in Postmasburg, near Kimberley in the Northern Cape Province, adjacent to the 75 MW Lesedi and 96 MW Jasper photovoltaic (PV) solar power projects successfully developed by SolarReserve and its investment partners.
Together, the three projects comprise the world’s first combined CSP and PV solar park with a total of 271 MW of generating capacity. Under the REIPPPP process, the projects ensure robust local participation and technology transfer, and are structured to exceed the minimum REIPPPP requirements for BBBEE (Broad-Based Black Economic Empowerment) equality on job creation, local content, ownership, management, procurement, and enterprise development.
All of the projects, as mandated under the REIPPPP, set aside a percentage of total project revenues for enterprise and socioeconomic development which will be invested for the benefit of local communities.